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Finance Act 2024

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Finance Act 2024

2024 Chapter 3

An Act to make provision in connection with finance.

Enacted [22nd February 2024]

Most Gracious Sovereign

We , Your Majesty’s most dutiful and loyal subjects, the Commons of the United Kingdom in Parliament assembled, towards raising the necessary supplies to defray Your Majesty’s public expenses, and making an addition to the public revenue, have freely and voluntarily resolved to give and to grant unto Your Majesty the several duties hereinafter mentioned; and do therefore most humbly beseech Your Majesty that it may be enacted, and be it enacted by the King’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

Part 1 Income tax and corporation tax

Chapter 1 Reliefs for businesses etc

Capital allowances for companies

1 Permanent full expensing etc for expenditure on plant or machinery

1 In section 7 of F(No.2)A 2023 (temporary full expensing etc for expenditure on plant or machinery), in subsection (3), in the inserted section 45S of CAA 2001, in paragraph (a), omit “but before 1 April 2026”.
2 In consequence of the provision made by subsection (1)—
a the amendments made by subsections (2) to (6) of section 7 of F(No.2)A 2023 are instead to operate as textual amendments of Part 2 of CAA 2001, and
b accordingly, in subsection (1) of that section, for the words from “has effect” to the end substitute “is amended as follows”, and, in the italic heading inserted by subsection (6) of that section, omit “temporary”.

Research and development

2 New regime for research and development carried out by companies

Schedule 1—
a replaces the existing scheme for R&D expenditure credit,
b amends the existing scheme for R&D relief, and
c makes related provision.

Films, television programmes, video games etc

3 Films, television programmes and video games produced by companies

Schedule 2 replaces Parts 15 to 15B of CTA 2009 with a new regime for the taxation of companies producing films, television programmes and video games, including relief in the form of payable credits arising from expenditure on production activities.

4 Theatrical productions made by companies

Schedule 3 amends the regime for the taxation of companies producing theatrical productions in Part 15C of CTA 2009.

5 Orchestral concerts produced by companies

Schedule 4 amends the regime for the taxation of companies producing orchestral concerts in Part 15D of CTA 2009.

6 Museum and gallery exhibitions produced by companies

Schedule 5 amends the regime for the taxation of companies producing museum and gallery exhibitions in Part 15E of CTA 2009.

7 Sections 3 to 6: administration of reliefs

Schedule 6 amends Schedule 18 to FA 1998 (company tax returns etc) in relation to the reliefs introduced or amended by sections 3 to 6.

Real Estate Investment Trusts

8 Miscellaneous amendments relating to REITs

Schedule 7 makes miscellaneous amendments to the corporation tax regime for Real Estate Investment Trusts.

Tonnage tax

9 Managers of ships

Schedule 8 amends Schedule 22 to FA 2000 to make provision to enable companies, and groups of companies, that manage qualifying ships to make a tonnage tax election (so that their profits for the purposes of corporation tax are calculated in accordance with the tonnage tax regime).

10 Increase in capital allowances limit for ship leasing

1 Paragraph 94 of Schedule 22 to FA 2000 (tonnage tax: restrictions on capital allowances) is amended as follows.
2 In sub-paragraph (3), for “£40 million”, in both places it occurs, substitute “£100 million”.
3 In sub-paragraph (5), for “£80 million” substitute “£200 million”.
4 The amendments made by subsections (2) and (3) have effect in relation to leases entered into on or after 1 April 2024.

Other reliefs

I111 Extension of EIS relief and VCT relief to shares issued before 6 April 2035

1 In—
a section 157(1)(aa) of ITA 2007 (which limits EIS relief to shares issued before 6 April 2025), and
b section 261(3)(za) of that Act (which limits VCT relief to shares issued before that date),
for “2025” substitute “2035”.
2 This section comes into force on such day as the Treasury may by regulations appoint.

12 Relief for payments of compensation by government etc to companies

1 FA 2020 is amended as follows.
2 After paragraph 5 of Schedule 15 (tax relief for scheme payments) insert—
3 In consequence of the amendment made by subsection (2)—
a in section 102—
i omit “and” after paragraph (b), and
ii after that paragraph insert—
;
b before paragraph 1 of Schedule 15 (and the italic heading before it) insert—
;
c in each of the following provisions of Schedule 15, before “Schedule” insert “Part of this”—
i paragraph 1(1);
ii paragraph 1(2);
iii paragraph 2(6).”

13 Enterprise management incentives: time limits

1 Part 7 of Schedule 5 to ITEPA 2003 (enterprise management incentives: notification of options) is amended as follows.
2 In paragraph 44(1) (time within which notice of options must be given to HMRC) for “within 92 days after the date of the grant of the option” substitute “on or before 6 July following the end of the tax year in which the option was granted”.
3 In paragraph 46(5) (time for giving of notices of enquiry)—
a for “end of the period of 92 days” substitute “date”;
b for “period within” substitute “date by”.
4 The amendments made by this section have effect in relation to share options (within the meaning of the EMI code (see paragraph 59 of Schedule 5 to ITEPA 2003)) granted on or after 6 April 2024.

Chapter 2 Pensions

14 Provision in connection with abolition of the lifetime allowance charge

1 Schedule 9 contains amendments in consequence of, or otherwise in connection with, the provision made by sections 18, 19 and 23 of F(No.2)A 2023 (which relate to the abolition of the lifetime allowance charge).
2 In that Schedule—
a Part 1 contains repeals of the provisions of Part 4 of FA 2004 (pension schemes etc) that impose the lifetime allowance charge, and amendments relating to those repeals;
b Part 2 contains amendments of Part 4 of FA 2004, Part 9 of ITEPA 2003, and subordinate legislation, relating to the taxation of lump sums paid by registered pension schemes;
c Part 3 contains amendments of Part 4 of FA 2004, Part 9 of ITEPA 2003, and subordinate legislation, relating to the taxation of lump sums paid by certain unregistered non-UK pension schemes and to the overseas transfer charge;
d Part 4 contains amendments of provisions that confer transitional protections in relation to the introduction of the lifetime allowance charge or reductions in the amount of the lifetime allowance;
e Part 5 contains amendments of Part 4 of FA 2004 and subordinate legislation relating to the provision of information;
f Part 6 contains provision about commencement and transitional matters, and powers to make further provision.
3 The following provisions of F(No.2)A 2023 (which are superseded by the amendments contained in Parts 1 and 2 of Schedule 9) are repealed—
  • section 18 (abolition of lifetime allowance charge);
  • section 19 (certain lump sums to be taxed at marginal rate).
4 The amendments contained in Schedule 9 include repeals of provisions that are spent or are no longer of practical utility.

15 MPs’ pension scheme etc: rectification of discrimination

1 The Treasury may by regulations make provision about the treatment for the purposes of income tax or capital gains tax of—
a rectification payments, or tax redress payments, made to or in respect of a member of a relevant pension scheme,
b tax windfalls resulting from a rectification exercise, or
c increases or decreases resulting from a rectification exercise in—
i the rate of a scheme pension payable by a relevant pension scheme, or
ii the value of any rights under a relevant pension scheme in respect of a member.
2 “Relevant pension scheme” means—
a an MPs’ pension scheme,
b a Senedd pension scheme, or
c an Assembly pension scheme.
3 “Rectification payment” means—
a a payment of pension benefits that—
i are payable as a result of a rectification exercise, and
ii would have become payable at an earlier time if the rectification exercise had been retrospective, or
b a refund of pension contributions that is owed as a result of a rectification exercise.
4 “Tax redress payment” means a payment made to or in respect of a member of a relevant pension scheme where—
a the member was subject to a rectification exercise, and
b the payment represents compensation for an amount paid in respect of an income tax liability for any tax year that would not have arisen if the rectification exercise had been retrospective.
5 “Tax windfall”, in relation to a rectification exercise and a member of a relevant pension scheme, means—
a a liability of the member for the annual allowance charge that would have arisen in the tax year 2023-24 or any earlier tax year, or
b a liability of the member for the lifetime allowance charge that would have arisen in the tax year 2022-23 or any earlier tax year,
if the rectification exercise had been retrospective.
6 “Rectification exercise” means an exercise, conducted by a relevant pension scheme in accordance with the rules of the scheme, under which the benefits payable to or in respect of a member in respect of the member’s remediable service (or any part of the member’s remediable service)—
a cease to be career average benefits and become instead final salary benefits, or
b cease to be final salary benefits and become instead career average benefits.
7 Regulations under this section may—
a modify any enactment contained in the Income Tax Acts or relating to capital gains tax;
b impose a charge to income tax in relation to a tax windfall;
c make different provision for different cases;
d include consequential, incidental, supplemental, transitional, transitory or saving provision.
8 Regulations under this section—
a if made before 6 April 2025, may be made so as to have effect in relation to the tax year 2024-25;
b if made on or after 6 April 2025, may include provision that has effect in relation to times before the regulations are made if that provision does not increase any person’s liability to tax.
9 In this section—
  • “an Assembly pension scheme” means a pension scheme made under section 48 of the Northern Ireland Act 1998;
  • “lifetime allowance charge” means the charge to income tax under section 214 of FA 2004, as it had effect before its repeal by this Act;
  • “modify” includes disapply or supplement;
  • “an MPs’ pension scheme” means a pension scheme made under paragraph 12(1) of Schedule 6 to the Constitutional Reform and Governance Act 2010;
  • “remediable service” means service that is pensionable service under a relevant pension scheme and—
    1. in the case of service that is pensionable service under an MPs’ pension scheme, takes place in the period beginning with 8 May 2015 and ending with 31 March 2023;
    2. in the case of service that is pensionable service under a Senedd pension scheme or an Assembly pension scheme, takes place in the period beginning with 6 May 2016 and ending with 6 May 2021;
  • “scheme pension” has the same meaning as in Part 4 of FA 2004 (pensions etc);
  • “a Senedd pension scheme” means a pension scheme made under section 20 of the Government of Wales Act 2006.

Chapter 3 Other income tax measures

Calculation of trade profits etc

16 Provision relating to the cash basis

Schedule 10 contains provision about the calculation of the profits of a trade, profession or vocation on the cash basis, including provision—
a for the cash basis to be the default basis of calculation for certain persons,
b removing eligibility conditions relating to receipts,
c removing restrictions on deductions for loan interest, and
d removing restrictions on the availability of certain loss reliefs.

Other

17 PAYE regulations: special types of payer or payee

1 In Chapter 3 of Part 11 of ITEPA 2003 (pay as you earn: special types of payer or payee), after section 688AA insert—
2 PAYE Regulations made by virtue of subsection (1) may make provision in relation to deemed direct payments made on or after 6 April 2017.

18 Carer’s allowance supplement: correction of statutory reference

1 In Table A in section 660 of ITEPA 2003 (taxable UK benefits), in the entry for carer’s allowance supplement, for “Sections 24 and 28” substitute “Section 81”.
2 The amendment made by subsection (1) is treated as having had effect from the time when section 12 of FA 2019 (tax treatment of social security income) came into force.

Part 2 Other taxes

Stamp duty and stamp duty reserve tax

19 Growth market exemption: qualifying UK multilateral trading facilities etc

1 Section 99A of FA 1986 (meaning of “recognised growth market” etc) is amended as follows.
2 In subsection (5)—
a in the words before paragraph (a), after “recognised stock exchange” insert “or a qualifying UK multilateral trading facility”;
b in paragraph (a), for “£170 million” substitute “£450 million”.
3 In subsection (6), at the end insert
4 After subsection (6) insert—
5 The amendments made by this section are treated as having come into force on 1 January 2024.

20 Capital-raising arrangements etc

Schedule 11 makes provision for and in connection with ensuring that it continues to be the case that—
a no 1.5% charge to stamp duty or stamp duty reserve tax arises in relation to—
i issues of securities or stock, or
ii transfers of securities made in the course of capital-raising arrangements or qualifying listing arrangements, and
b no charge to stamp duty arises in relation to the issue of bearer instruments.

Electricity generator levy

21 New investment exemption

1 Part 5 of F(No.2)A 2023 (electricity generator levy) is amended as follows.
2 In section 280 (key concepts), in subsection (1), in the definition of “relevant” (as in relevant generating station)—
a omit the “and” after paragraph (a), and
b after paragraph (b) insert
.
3 After section 311 insert—
4 In section 313 (definitions in this Part), in the table, at the appropriate place insert—
.

Pillar Two

22 Ensuring consistency of Parts 3 and 4 of F(No.2)A 2023 with OECD rules etc

Schedule 12 makes amendments to F(No.2)A 2023 in relation to multinational top-up tax and in relation to domestic top-up tax.

Excise duty rates

23 Rates of tobacco products duty

1 In Schedule 1 to TPDA 1979 (table of rates of tobacco products duty), for the Table substitute—
.
2 In consequence of the provision made by subsection (1), in Schedule 2 to the Travellers’ Allowances Order 1994 (which provides in certain circumstances for a simplified calculation of excise duty on goods brought into Great Britain)—
a in the entry relating to cigarettes, for “£393.45” substitute “£422.80”,
b in the entry relating to hand rolling tobacco, for “£351.03” substitute “£412.32”,
c in the entry relating to other smoking tobacco and chewing tobacco, for “£161.62” substitute “£173.68”,
d in the entry relating to cigars, for “£367.61” substitute “£395.03”,
e in the entry relating to cigarillos, for “£367.61” substitute “£395.03”, and
f in the entry relating to tobacco for heating, for “£90.88” substitute “£97.66”.
3 The amendments made by this section are treated as having come into force at 6pm on 22 November 2023.

24 Rates of vehicle excise duty

1 Schedule 1 to VERA 1994 (annual rates of vehicle excise duty) is amended as follows.
2 In paragraph 1 (general rate)—
a in sub-paragraph (2) (vehicle not covered elsewhere in Schedule with engine cylinder capacity exceeding 1,549cc), for “£325” substitute “£345”, and
b in sub-paragraph (2A) (vehicle not covered elsewhere in Schedule with engine cylinder capacity not exceeding 1,549cc), for “£200” substitute “£210”.
3 In paragraph 1B (graduated rates for light passenger vehicles registered before 1 April 2017), for the Table substitute—
.
4 In the sentence immediately following the Table in that paragraph, for paragraphs (a) and (b) substitute—
5 In paragraph 1GC (graduated rates for first licence for light passenger vehicles registered on or after 1 April 2017), for Table 1 (vehicles other than higher rate diesel vehicles) substitute—
.
6 In that paragraph, for Table 2 (higher rate diesel vehicles) substitute—
.
7 In paragraph 1GD(1) (rates for any other licence for light passenger vehicles registered on or after 1 April 2017)—
a in paragraph (a) (reduced rate), for “£170” substitute “£180”, and
b in paragraph (b) (standard rate), for “£180” substitute “£190”.
8 In paragraph 1GE(2) (rates for light passenger vehicles registered on or after 1 April 2017 with a price exceeding £40,000)—
a in paragraph (a), for “£560” substitute “£590”, and
b in paragraph (b), for “£570” substitute “£600”.
9 In paragraph 1J(a) (rates for light goods vehicles that are not pre-2007 or post-2008 lower emission vans), for “£320” substitute “£335”.
10 In paragraph 2(1) (rates for motorcycles)—
a in paragraph (a) (engine cylinder capacity not exceeding 150cc), for “£24” substitute “£25”,
b in paragraph (b) (motorbicycles with engine cylinder capacity exceeding 150cc but not exceeding 400cc), for “£52” substitute “£55”,
c in paragraph (c) (motorbicycles with engine cylinder capacity exceeding 400cc but not exceeding 600cc), for “£80” substitute “£84”, and
d in paragraph (d) (other cases), for “£111” substitute “£117”.
11 The amendments made by this section have effect in relation to licences taken out on or after 1 April 2024.

25 Rates of air passenger duty

1 Section 30 of FA 1994 (air passenger duty: rates) is amended as follows.
2 In subsection (1B) (journeys ending in the United Kingdom)—
a in paragraph (a), for “£6.50” substitute “£7”, and
b in paragraph (b), for “£13” substitute “£14”.
3 In subsection (2A) (long-haul journeys)—
a in paragraph (a), for “£87” substitute “£88”, and
b in paragraph (b), for “£191” substitute “£194”.
4 In subsection (4A) (ultra-long haul journeys)—
a in paragraph (a), for “£91” substitute “£92”, and
b in paragraph (b), for “£200” substitute “£202”.
5 In subsection (4E) (journeys on aircraft equipped to carry fewer than 19 passengers)—
a in paragraph (aa), for “£574” substitute “£581”, and
b in paragraph (d), for “£601” substitute “£607”.
6 The amendments made by this section have effect in relation to the carriage of passengers beginning on or after 1 April 2024.

Miscellaneous VAT and excise measures

26 Rebate on heavy oil and certain bioblends used for heating

In Schedule 1A to HODA 1979 (excepted machines), in paragraph 8, in sub-paragraph (1)(e), for the words from “kerosene” to the end substitute “for fuel—

27 Vehicle excise duty exemption for foreign vehicles

After section 5 of VERA 1994 (exempt vehicles) insert—

28 Interpretation of VAT and excise law

1 This section makes provision about how—
a the European Union (Withdrawal) Act 2018 (“EUWA 2018”), and
b the amendments made to that Act by the Retained EU Law (Revocation and Reform) Act 2023 (“REULA 2023”),
are to apply for the purpose of interpreting enactments relating to value added tax or any duty of excise (“VAT and excise law”).
2 Section 4 of EUWA 2018 (retained EU rights, powers, liabilities etc) continues to have effect (despite the provision made by section 2 of REULA 2023) for the purpose of interpreting VAT and excise law subject to the following exception.
3 The exception is that Articles 110 and 111 of the Treaty on the Functioning of the European Union (which relate to internal taxation on products) have no effect for that purpose.
4 Section 5(A1) to (A3) of EUWA 2018 (which are inserted by section 3 of REULA 2023 and which abolish the supremacy of EU law) have effect in relation to VAT and excise law as they have effect in relation to other domestic enactments but only so far as they relate to the disapplication or quashing of any enactment as a result of EU law (and, accordingly, the superseded provisions continue to have effect for the purpose of interpreting VAT and excise law).
5 Retained general principles of EU law—
a continue to be relevant (despite the provision made by section 4 of REULA 2023) for the purpose of interpreting VAT and excise law in the same way, and to the same extent, as they were relevant for that purpose before the coming into force of that section, but
b otherwise have effect for that purpose subject to the provision made by that Act (including, in particular, the amendments made by section 6 of that Act (role of courts)).
6 In this section—
a the reference to any duty of excise is to be read in accordance with section 49 of TCTA 2018,
b the reference to the superseded provisions is a reference to section 5(1) to (3) of EUWA 2018 as those subsections had effect immediately before the passing of REULA 2023, and
c the reference to retained general principles of EU law is to be read in accordance with EUWA 2018 as that Act had effect immediately before the passing of REULA 2023.
7 This section needs to be read with sections 42 and 47 of TCTA 2018 (which make other provision about EU law relating to VAT and excise law and which continue to have effect for the purpose mentioned in subsection (1) above).
8 This section is treated as having come into force on 1 January 2024.

Environmental taxes

29 Rates of landfill tax

1 Section 42 of FA 1996 (amount of landfill tax) is amended as follows.
2 In subsection (1)(a) (standard rate), for “£102.10” substitute “£103.70”.
3 In subsection (2) (reduced rate for certain disposals), in the words after paragraph (b)—
a for “£102.10” substitute “£103.70”, and
b for “£3.25” substitute “£3.30”.
4 The amendments made by this section have effect in relation to disposals made (or treated as made) on or after 1 April 2024.

30 Rate of aggregates levy

1 In section 16(4) of FA 2001 (rate of aggregates levy), for “£2” substitute “£2.03”.
2 The amendment made by this section has effect in relation to aggregate subjected to commercial exploitation on or after 1 April 2024.

31 Rate of plastic packaging tax

1 In section 45(1) of FA 2021 (rate of plastic packaging tax), for “£210.82” substitute “£217.85”.
2 The amendment made by this section has effect in relation to packaging components produced in, or imported into, the United Kingdom on or after 1 April 2024.

Part 3 Miscellaneous and final

Evasion, avoidance etc

32 Increase in maximum terms of imprisonment for tax offences

1 In the specified provisions of the following enactments, for “seven” (or “7”) substitute “14”—
TMA 1970Section 106A(2)(b) (fraudulent evasion of income tax)
Customs and Excise Duties (General Reliefs) Act 1979Section 13C(4)(b) (relieved goods used, etc, in breach of condition)
CEMA 1979Section 50(4)(b) (improper importation of goods)
Section 53(9)(b) (shipping etc dutiable or restricted goods with fraudulent intent)
Section 63(6)(b) (goods taken on board a ship etc with fraudulent intent)
Section 68(3)(b) (exportation of prohibited or restricted goods with intent to evade prohibition or restriction)
Section 68A(2)(b) (fraudulent evasion of agricultural levy)
Section 100(4)(b) (taking etc of warehoused goods with intent to defraud)
Section 136(2)(b) (claims for drawback etc with intent to defraud)
Section 159(7)(b) (removing examinable goods with intent to defraud)
Section 170(3)(b) (fraudulent evasion of duty, etc)
Section 170B(1)(b) (taking preparatory steps for evasion of excise duty)
HODA 1979Section 10(7)(b) (contravening restrictions on use of duty-free oil)
Section 13(5)(b) (contravening restrictions on use of heavy oil)
Section 13AB(7)(b) (contravening restrictions on use of rebated kerosene)
Section 14(8)(b) (contravening restrictions on use of light oil)
Section 14D(5)(b) (contravening restrictions on use of rebated biodiesel or bioblend)
Section 14F(3)(b) (contravening restrictions on use of restricted fuel) (as substituted by paragraph 9 of Schedule 11 to FA 2020)
Section 20AAC(4)(d) (contravening restrictions on use of aqua methanol)
Section 24A(6)(b) (contravening restrictions on use of marked oil)
F73. . .F73. . .
FA 1993Section 31(2)(b) (fraudulent evasion etc of lottery duty)
VATA 1994Section 72(1)(b), (3)(ii) and (8)(b) (fraudulent evasion etc of VAT)
FA 1994Section 41(2)(b) (fraudulent evasion etc of duty)
Paragraph 10(1)(b), (3)(b) and (5)(b) of Schedule 7 (fraudulent evasion etc of insurance premium tax)
FA 1996Paragraph 16(1)(b), (3)(b) and (5)(b) of Schedule 5 (fraudulent evasion etc of landfill tax)
FA 1997Paragraph 12(3)(b)(ii) of Schedule 1 (fraudulent evasion etc of gaming duty)
FA 2000Paragraphs 92(3)(b), 93(3)(b) and 94(3)(b) of Schedule 6 (fraudulent evasion etc of climate change levy)
FA 2001Paragraphs 1(3)(b), 2(3)(b) and 3(3)(b) of Schedule 6 (fraudulent evasion etc of aggregates levy)
FA 2003Section 95(2)(b) (fraudulent evasion of stamp duty land tax)
FA 2012Paragraph 37(2)(a) of Schedule 24 (fraudulent evasion of machine games duty)
FA 2014Section 174(3)(a) (fraudulent evasion of general betting duty, pool betting duty and remote gaming duty)
FA 2017Section 50(3)(d)(i) (fraudulent evasion of soft drinks levy)
FA 2021Section 77(3)(d)(i) (fraudulent evasion of plastic packaging tax)
Section 78(3)(d)(i) (false statements in connection with plastic packaging tax)
Section 79(3)(d)(i) (plastic packaging tax: conduct involving evasions or false statements)
2 Subsections (3) to (5) make amendments to CEMA 1979 which are consequential on amendments to that Act made by subsection (1).
3 In section 50—
a in subsection (4) for “, (5AA), (5B) or (5C)” substitute “or (5B)”,
b in subsection (5A) for “7” (in the closing words) substitute “14”,
c omit subsection (5AA),
d in subsection (5B)(b) for “7” substitute “14”, and
e omit subsection (5C).
4 In section 68—
a in subsection (3) for “, (4A), (4AA) or (4B)” substitute “or (4A)”,
b in subsection (4A) for “7” (in the closing words) substitute “14”,
c omit subsection (4AA), and
d omit subsection (4B).
5 In section 170—
a in subsection (3) for “, (4AA), (4B) or (4C)” substitute “or (4B)”,
b in subsection (4A) for “7” (in the closing words) substitute “14”,
c omit subsection (4AA),
d in subsection (4B)(b) for “7” substitute “14”, and
e omit subsection (4C).
6 Subject to subsection (7), the amendments made by this section have effect in relation to offences committed on or after the day on which this Act is passed.
7 The amendment made to section 14F of HODA 1979 so far as applying to a part of the United Kingdom other than Northern Ireland—
a comes into force at the same time as paragraph 9 of Schedule 11 to FA 2020 (which inserts a new section 14F into HODA 1979) comes into force in its application to that part of the United Kingdom, and
b has effect in relation to offences committed on or after the day on which it comes into force.

33 Disqualification of directors etc promoting tax avoidance schemes

Schedule 13 makes provision for HMRC to apply for disqualification orders under the Company Directors Disqualification Act 1986 in connection with the promotion of tax avoidance schemes.

34 Promoters of tax avoidance: failure to comply with stop notice etc

1 In FA 2014, before section 278 (but after the italic heading) insert—
2 In section 280(1) of FA 2014 (penalties for offences), after “section” insert “277A,”.
3 The offence under section 277A(1) of FA 2014 (as inserted by subsection (1)) applies in relation to a failure to comply that occurs on or after the date on which this Act is passed.
4 The offence under section 277A(2) of FA 2014 (as inserted by subsection (1)) applies in relation to duties under section 236B(3)(a), (4)(a) or (5)(a) arising on or after the date on which this Act is passed.
5 In section 236B(7) of FA 2014 (effect of stop notices), for “(5)(b)” substitute “(5)(a)”.

35 Construction industry scheme: gross payment status

1 FA 2004 is amended as follows.
2 In section 66 (cancellation of registration for gross payment)—
a in subsection (1)—
i in paragraph (b), after “sub-contractor)” insert “in connection with an obligation arising”;
ii in paragraph (c), for “any such provision” substitute “an obligation arising under or in connection with any provision of this Chapter or of regulations made under it”.
b in subsection (3)—
i for paragraph (b) substitute—
;
ii in paragraph (c), for “any such provision” substitute “an obligation arising under or in connection with any provision of this Chapter or of regulations made under it”.
3 In Schedule 11 (conditions for registration for gross payment)—
a in paragraph 4, in sub-paragraph (1)(a)—
i in sub-paragraph (iii), for “the PAYE Regulations (SI 2003/2682)” substitute “PAYE regulations”;
ii at the end insert—
;
b in paragraph 8, in sub-paragraph (1)(a)—
i in sub-paragraph (iii), for “the PAYE Regulations (SI 2003/2682)” substitute “PAYE regulations”;
ii at the end insert—
;
c in paragraph 12, in sub-paragraph (1)(a)—
i in sub-paragraph (iii), for “the PAYE Regulations (SI 2003/2682)” substitute “PAYE regulations”;
ii at the end insert—
.
4 The amendments in this section have effect in relation to—
a applications for gross payment status made on or after 6 April 2024, and
b registrations for gross payment status which are in effect on or after 6 April 2024 (but see subsection (5)).
5 When making a determination under section 66(1)(a) of FA 2004 (cancellation of registration for gross payment) in relation to a person registered for gross payment status before 6 April 2024, any failure by that person before 6 April 2024 to comply with an obligation to account for or pay VAT must be disregarded (notwithstanding the amendments made by subsection (3)).

Administration

36 Additional information to be contained in returns under TMA 1970 etc

1 In section 8 of TMA 1970 (personal return), after subsection (1H) insert—
2 In section 8A of TMA 1970 (trustee’s return), after subsection (1F) insert—
3 In section 12AA of TMA 1970 (partnership return), after subsection (5E) insert—
4 In Chapter 6 of Part 11 of ITEPA 2003 (pay as you earn), before section 708 insert—
5 The amendments made by this section have effect for the tax year 2025-26 and subsequent tax years.

37 Commencement of rules imposing penalties for failure to make returns etc

1 Regulations made by the Treasury under any of the powers in sections 116, 117 or 118 of FA 2021 may provide for any provision of Schedules 24 to 27 to that Act (penalties for failure to make returns etc or pay tax) to come into force for the purposes of failures by eligible volunteers.
2 An eligible volunteer is an individual in respect of whom an election has effect under the regulations.
3 The regulations may in particular—
a provide for an election to take effect only if accepted by an officer of Revenue and Customs;
b provide that an election may not be revoked by the individual;
c provide that an election ceases to have effect upon an officer of Revenue and Customs giving notice to the individual;
d make provision about the consequences of an election ceasing to have effect.
4 The provision that may be made by virtue of subsection (3)(d) includes provision for an election that ceases to have effect to be treated as never having had effect, other than for the purposes of any failure in respect of which His Majesty’s Revenue and Customs have already assessed a penalty.

Final

38 Abbreviations used in Act

In this Act the following abbreviations are references to the following Acts—
BGDA 1981Betting and Gaming Duties Act 1981
CAA 2001Capital Allowances Act 2001
CEMA 1979Customs and Excise Management Act 1979
CTA 2009Corporation Tax Act 2009
CTA 2010Corporation Tax Act 2010
FA followed by a yearFinance Act of that year
F(No.2)A followed by a yearFinance (No.2) Act of that year
HODA 1979Hydrocarbon Oil Duties Act 1979
ICTAIncome and Corporation Taxes Act 1988
ITA 2007Income Tax Act 2007
ITEPA 2003Income Tax (Earnings and Pensions) Act 2003
ITTOIA 2005Income Tax (Trading and Other Income) Act 2005
TCGA 1992Taxation of Chargeable Gains Act 1992
TCTA 2018Taxation (Cross-border Trade) Act 2018
TIOPA 2010Taxation (International and Other Provisions) Act 2010
TMA 1970Taxes Management Act 1970
TPDA 1979Tobacco Products Duty Act 1979
VERA 1994Vehicle Excise and Registration Act 1994

39 Short title

This Act may be cited as the Finance Act 2024.

Schedules

Schedule 1 

Research and development

Section 2

Part 1 Main amendments of CTA 2009

1CTA 2009 is amended as follows.
I92In Part 3, omit Chapter 6A (R&D expenditure credit).
I133In the heading of Part 13, omit “Additional relief for”.
I144
1 Chapter 1 of Part 13 is amended as follows.
2 For section 1039 (overview of Part) substitute—
3 For section 1040 (relief to be available under more than one Chapter of Part 13) substitute—
4 Omit section 1040A (which refers to the existing R&D expenditure credit).
I75After Chapter 1 of Part 13 insert—
I26
1 Chapter 2 of Part 13 (relief for SMEs on the cost of R&D) is amended as follows.
2 For the heading substitute “Relief for loss-making, R&D-intensive SMEs”.
3 For section 1043 (overview of Chapter) substitute—
4 In section 1044 (additional deduction for trading companies)—
a in subsection (1), for “D” substitute “F”;
b after subsection (2) insert—
;
c after subsection (5) insert—
;
d in subsection (6)—
i at the end of the first sentence insert “(see Part 9A of Schedule 18 to the FA 1998, and also sections 1045A and 1112F)”;
ii omit the second sentence;
e in subsection (7), at the end insert—
;
f omit subsection (9).
5 In section 1045 (deemed trading loss for non-trading companies)—
a in subsection (1), for “conditions A and C” substitute “each of conditions A to D”.
b after subsection (2) insert—
;
c after subsection (4) insert—
;
d in subsection (5)—
i at the end of the first sentence insert “(see section 1047, and also section 1112F)”;
ii omit the second sentence;
e omit subsection (9).
6 After section 1045 insert—
7 Omit section 1046 (relief only available to going concerns).
8 In section 1051 (meaning of “qualifying Chapter 2 expenditure”), for the words from “means” to the end substitute “is such of its expenditure as is qualifying Chapter 2 expenditure by virtue of section 1052, 1053 or 1053A.”
9 For sections 1052 and 1053 (categories of qualifying Chapter 2 expenditure) substitute—
10 In section 1054 (entitlement to R&D tax credit)—
a in subsection (2)—
i at the end of the first sentence insert “(see Part 9A of Schedule 18 to the FA 1998, and also sections 1054A and 1112F)”;
ii omit the second sentence;
b in subsection (4), for “1060” substitute “1112H”;
c omit subsection (5).
11 Omit section 1057 (R&D tax credit only available to going concerns).
12 In section 1058 (amount of R&D tax credit)—
a in subsection (1)—
i in paragraph (a), for “10%” substitute “14.5%”;
ii for paragraph (aa) substitute—
;
b omit subsections (1A) to (1C);
c in subsection (2), omit paragraphs (b) and (c);
d omit subsection (3).
13 Omit sections 1058A to 1058D (provision in relation to PAYE and NIC liabilities).
14 In section 1060 (payment of R&D tax credit)—
a for the heading substitute “Use of credit to pay corporation tax”;
b omit subsections (4) to (7).
15 After section 1062 insert—
I157Omit Chapter 6 of Part 13 (further provision about Chapters 2 to 5).
I108For Chapter 8 of Part 13 (cap on aid for R&D) substitute—
I119
1 Chapter 9 of Part 13 (supplementary provision) is amended as follows.
2 In section 1126B (regulations about consumable items and research and development), omit subsection (3).
3 In section 1128 (meaning of “externally provided worker”), in subsection (9), for “1131” substitute “1132A”.
4 In section 1129 (qualifying expenditure on externally provided workers: connected persons)—
a in subsection (3) omit the “and” at the end of paragraph (b);
b in that subsection, at the end of paragraph (c) insert “, and
5 In section 1131 (qualifying expenditure on externally provided workers: other cases)—
a in subsection (2), for “65% of the staff provision payment” substitute “65% of so much of the staff provision payment as is attributable to qualifying earnings of externally provided workers”;
b after subsection (3) insert—
6 After section 1132 insert—
7 For section 1133 and the italic heading preceding it substitute—
8 In section 1134 (qualifying element of sub-contractor payment made between connected persons)—
a in the heading, for “sub-contractor” substitute “contractor”;
b in subsection (1), for paragraphs (a) and (b) (not including the following “and”) substitute—
;
c in subsection (1)(c)—
i omit “sub-contractor”;
ii for “the sub-contractor’s”, in both places it appears, substitute “B’s”;
d in subsection (2)—
i in the words before paragraph (a), omit “sub-contractor”;
ii in paragraph (b), for “the sub-contractor’s” substitute “B’s”;
e in subsection (3)—
i in the words before paragraph (a), for “the sub-contractor” substitute “B”;
ii in paragraph (a), for “the sub-contractor”, in the first place it appears, substitute “B”;
iii also in paragraph (a), omit “sub-contractor” in the second place it appears;
iv for paragraph (d) substitute—
;
f in subsection (4)—
i in paragraph (a), for “the sub-contractor” substitute “B”;
ii in paragraph (b), for “the company’s”, in both places it appears, substitute “A’s”;
iii also in paragraph (b), for “sub-contractor” substitute “contractor”;
g for subsection (5) substitute—
;
h in subsection (6), for “the company or the sub-contractor” substitute “A or B”.
9 In section 1135 (election to be treated as connected for purpose of determining qualifying element)—
a in subsection (1), for “A company and a sub-contractor who are not connected” substitute “Where a company makes a contractor payment to a person with whom it is not connected, the company and that person”;
b in subsection (2)—
i for “sub-contractor” substitute “contractor”;
ii omit “other arrangement”;
c in subsection (4), omit “or other arrangement”.
10 For section 1136 substitute—
11 Omit section 1138 (meaning of “subsidised expenditure”).
12 In place of the omitted section 1138 insert—
13 After section 1140 insert—
14 In section 1142 (meaning of “qualifying body”)—
a for the heading substitute “Ineligible companies”;
b in subsection (1), in the words before paragraph (a), for ““qualifying body” means” substitute “a company is an “ineligible company” if it is”;
c after subsection (4) insert—
15 In section 1142B (meaning of “R&D claim”), in paragraph (a), for “104A” substitute “1042C”.
16 After section 1142B insert—
17 After section 1142C (inserted by sub-paragraph (16)) insert—
18 After section 1142D (inserted by sub-paragraph (17)) insert—

Part 2 Consequential amendments

I310 FA 1998

1 Schedule 18 to FA 1998 (company tax returns) is amended as follows.
2 In paragraph 52(2A)(b) (application of provisions about discovery assessments to amounts paid by way of R&D expenditure credit), for “Chapter 6A of Part 3” substitute “Chapter 1A of Part 13”.
3 In paragraph 83A (application of Part 9A of the Schedule to claims for R&D relief), for the words from “to” to the end substitute “to claims for relief under Part 13 of the Corporation Tax Act 2009 (relief for research and development).”
4 In paragraph 83E (deadlines for claiming R&D relief)—
a in sub-paragraph (2)(a), after “under” insert “Chapter 2 of”;
b in sub-paragraph (3), for “Chapter 6A of Part 3” substitute “Chapter 1A of Part 13”.

I611 FA 2007

In Schedule 24 to FA 2007 (penalties for errors), in paragraph 28(fa)(ia) (“corporation tax credit” includes R&D expenditure credit), for “Chapter 6A of Part 3” substitute “Chapter 1A of Part 13”.

I1212 CTA 2009

1 CTA 2009 is amended as follows.
2 In Part 14A (inserted by paragraph 1 of Schedule 2)—
a in section 1179DT (expenditure attracting R&D relief not eligible for audiovisual expenditure credit), omit paragraph (a);
b in section 1179FL (expenditure attracting R&D relief not eligible for video game expenditure credit), omit paragraph (a).
3 In section 1195(3A) (expenditure attracting R&D relief or television relief not eligible for film tax relief)—
a in paragraph (a), for “Chapter 6A of Part 3” substitute “Chapter 1A of Part 13”;
b in paragraph (b), for “Part 13 (additional relief for expenditure on research and development)” substitute “Chapter 2 of Part 13 (relief for loss-making, R&D-intensive SMEs)”.
4 In section 1216C(4) (expenditure attracting R&D relief not eligible for television relief)—
a in paragraph (a), for “Chapter 6A of Part 3” substitute “Chapter 1A of Part 13”;
b in paragraph (b), for “Part 13 (additional relief for expenditure on research and development)” substitute “Chapter 2 of Part 13 (relief for loss-making, R&D-intensive SMEs)”.
5 In section 1217C(4) (expenditure attracting R&D relief not eligible for video game relief)—
a in paragraph (a), for “Chapter 6A of Part 3” substitute “Chapter 1A of Part 13”;
b in paragraph (b), for “Part 13 (additional relief for expenditure on research and development)” substitute “Chapter 2 of Part 13 (relief for loss-making, R&D-intensive SMEs)”.
6 In section 1217JA(2) (expenditure attracting R&D relief not eligible for theatre relief)—
a omit paragraph (a);
b in paragraph (b), omit “additional”.
7 In section 1217RF(2) (expenditure attracting R&D relief or other creative sector relief not eligible for orchestra relief), omit paragraph (za) (inserted by paragraph 8 of Schedule 4).
8 In section 1218ZCG(2) (expenditure attracting R&D relief or other creative sector relief not eligible for museum and gallery exhibition relief)—
a omit paragraph (a);
b in paragraph (b), omit “additional”.
9 In section 1310(4) (orders and regulations subject to affirmative procedure)—
a omit paragraph (zzza);
b after paragraph (zb) insert—
.
10 In Schedule 4 (index of defined expressions)—
a omit the following entries—
;
;
;
;
;
;
;
;
;
;
;
;
;
;
;
b at the appropriate places insert—
;
;
;
.

I513 CTA 2010

1 CTA 2010 is amended as follows.
2 In section 269DA(2) (meaning of banking company’s “surcharge profits”), in the definition of “RDEC”, for “Chapter 6A of Part 3 of CTA 2009 (trade profits: R&D expenditure credits)” substitute “Chapter 1A of Part 13 of CTA 2009 (R&D expenditure credit)”.
3 In Part 8A (profits from exploiting patents etc)—
a in section 357BJB(3) (R&D expenditure not to be routine deduction in calculating IP profits), in paragraph (a)(ii), for “Chapter 6A of Part 3 of CTA 2009” substitute “Chapter 1A of that Part”;
b in section 357BLB(7)(e) (application of sections 1127 to 1131 of CTA 2009 for purpose of determining in-house R&D expenditure under Part 8A), at the end insert “as those provisions had effect before the amendments made by paragraph 9 of Schedule 1 to FA 2024,”;
c in section 357CG(4)(a) (R&D expenditure credit to be deducted in calculating IP profits), for “Chapter 6A of Part 3” substitute “Chapter 1A of Part 13”.
4 In Chapter 9 of Part 8B (treatment of R&D credits and relief for purposes of Northern Ireland rate)—
a in section 357P(1) (overview of Chapter), for paragraphs (a) and (b) substitute—
;
b in the italic heading before section 357PA, for “Chapter 6A of Part 3” substitute “Chapter 1A of Part 13”;
c in section 357PA (R&D expenditure credit to form part of mainstream profits or losses)—
i in the heading, omit “under Chapter 6A of Part 3 of CTA 2009”;
ii in subsection (1)(a), for “Chapter 6A of Part 3” substitute “Chapter 1A of Part 13”;
d in section 357PD (amount of R&D tax credit for Northern Ireland company)—
i in subsections (2)(b), (3)(b) and (4)(b), for “given by section 1058(1A) of CTA 2009” substitute “of the cap by reference to the company’s PAYE and NIC liabilities for the accounting period”;
ii omit subsections (2A), (3A) and (4A);
iii after subsection (5) insert—

I814 TIOPA 2010

In the following provisions of TIOPA 2010, for “within the meaning of section 104A” substitute “under Chapter 1A of Part 13”—
a section 407(3)(a) (R&D expenditure credit not to be taken into account in determining tax-EBITDA);
b section 416(2A) (R&D expenditure credit not to be taken into account in determining worldwide group’s profit before tax).

I415 FA 2013

In Schedule 43C to FA 2013 (penalties in connection with the general anti-abuse rule), in paragraph 11(e)(ii) (“corporation tax credit” includes R&D expenditure credit), for “Chapter 6A of Part 3” substitute “Chapter 1A of Part 13”.

Part 3 Commencement and transitional and transitory provision

P116 General commencement of Parts 1 and 2

1 The amendments made by this Schedule, except those made by sub-paragraphs (16) to (18) of paragraph 9, have effect in relation to accounting periods beginning on or after the appointed day.
2 In this Part, the “appointed day” is a day appointed by the Treasury in regulations.

17 Assignments and nominations

1 The amendment made by paragraph 9(16) does not have effect in relation to—
a an assignment made before 22 November 2023,
b an agreement made before that date, or
c an assignment made on or after that date to carry out an agreement made before that date.
2 The amendment made by paragraph 9(17) has effect only in relation to claims made on or after 1 April 2024.

18 Avoidance of overlaps and gaps in entitlement during transition

1 Sub-paragraphs (2) and (3) apply if, but for those sub-paragraphs—
a one company (“company A”) would be entitled to old R&D relief, and
b another company (“company B”) would be entitled to new R&D relief,
in respect of expenditure attributable to the same research and development.
2 If company B would have been entitled to old R&D relief in respect of its expenditure had the Part 1 amendments not been made, only company B is entitled to the relief.
3 In any other case, only company A is entitled to the relief.
4 Sub-paragraph (5) applies if—
a a company incurs pre-commencement expenditure,
b the company is not entitled to old R&D relief in respect of the expenditure, and
c had the expenditure been post-commencement expenditure, it would have been—
i qualifying Chapter 1A expenditure by virtue of section 1042E of CTA 2009 or section 1042F of that Act as it refers to section 1042E, or
ii qualifying Chapter 2 expenditure by virtue of section 1053 of CTA 2009 (as it has effect after the Part 1 amendments) or section 1053A of that Act as it refers to section 1053.
5 The company is to be treated as satisfying sections 1042F(4) and 1053A(4) of CTA 2009 for the purposes of ascertaining the entitlement of another company to new R&D relief in respect of expenditure attributable to the same research and development as the expenditure mentioned in sub-paragraph (4).
6 Sub-paragraph (7) applies if—
a in respect of pre-commencement expenditure attributable to research and development, one company (“company C”)—
i is not entitled to old R&D relief, but
ii would be so entitled if none of sections 104C(2), 104G(5), 104H(6), 104J(4), 104K(5), 104L(4), 1052(5) and 1053(4) of CTA 2009 (as they have effect before the Part 1 amendments) applied, and
b in respect of post-commencement expenditure attributable to the same research and development, another company (“company D”) would, had the expenditure been pre-commencement expenditure, have been entitled to old R&D relief by virtue of section 1053 of CTA 2009 (as it has effect before the Part 1 amendments).
7 For the purpose of ascertaining the entitlement of company D to new R&D relief, the research and development is to be treated as contracted out by company D within the meaning of section 1133 of CTA 2009 (as it has effect after the Part 1 amendments).
8 In this paragraph—
  • “the new R&D provisions” means Part 13 of CTA 2009 as it has effect after the Part 1 amendments;
  • “new R&D relief” means relief under the new R&D provisions;
  • “the old R&D provisions” means Chapter 6A of Part 3 or Part 13 of CTA 2009 as that Chapter or Part has effect before the Part 1 amendments;
  • “old R&D relief” means relief under the old R&D provisions;
  • “the Part 1 amendments” means the amendments made by Part 1 of this Schedule;
  • “post-commencement expenditure” means expenditure incurred in an accounting period beginning on or after the appointed day;
  • “pre-commencement expenditure” means expenditure incurred in an accounting period beginning before the appointed day.

19 Transitional provision relating to claim notifications

The reference in section 1142B of CTA 2009 (as amended by paragraph 9(15)) to claims under section 1042C of that Act is to be read as including claims under section 104A of that Act before its repeal by paragraph 2.

20 Transitional provision relating to the R&D intensity condition

The references in sections 1044(2A)(b) and 1045(2A)(b) of CTA 2009 (inserted by paragraph 6(4) and (5)) to having met the R&D intensity condition in an accounting period—
a include having met the R&D intensity condition for the purposes of paragraph 21 in an accounting period to which that paragraph applies, but
b are not applicable to any other accounting period beginning before the appointed day.

21 Higher rate of payable credit for R&D-intensive SMEs from 1 April 2023

1 Sub-paragraph (2) applies if, in an accounting period beginning before the appointed day but ending on or after 1 April 2023, a company—
a has a Chapter 2 surrenderable loss, and
b meets the R&D intensity condition.
2 The amount of R&D tax credit to which the company is entitled for the period is to be determined as if the amendment made by section 4(3)(d) of FA 2023 (reduction in rate of credit from 14.5% to 10%) had not been made.
3 Subsections (2) to (7) of section 1045ZA of CTA 2009, as inserted by paragraph 6(6), determine whether a company meets the R&D intensity condition in an accounting period for the purposes of sub-paragraph (1)(b).
4 But that section is to be read for the purposes of sub-paragraph (3) as if—
a in subsections (2) and (3), for “30%” there were substituted “40%”;
b in subsection (7), for paragraph (b) there were substituted—
5 In this paragraph, “Chapter 2 surrenderable loss” and “R&D tax credit” have the same meanings as in Chapter 2 of Part 13 of CTA 2009 (see sections 1054 and 1055 of that Act).

Schedule 2 

Films, television programmes and video games

Section 3

Part 1 New regime for films, television programmes and video games

1 After Part 14 of CTA 2009 insert—

Part 2 Amendments consequential on Part 1

2 Films Act 1985

1 The Films Act 1985 is amended as follows.
2 In section 6 (certification of British films), after “purposes of” insert “audiovisual expenditure credit and”.
3 In Schedule 1 (certification of British films)—
a in the heading, after “purposes of” insert “audiovisual expenditure credit and”;
b in paragraph 1(1), for the definition of “film production company” substitute—

3 FA 1998

1 Schedule 18 to FA 1998 (company tax returns etc) is amended as follows.
2 In paragraph 10 (certain claims and elections to be included in tax return)—
a in sub-paragraph (4), for the words from “for” to “or” substitute “under Parts 14A to”;
b after sub-paragraph (4) insert—
3 In the heading of Part 9D, for the words from “for” to “or” substitute “under Parts 14A to”.
4 In paragraph 83S (application of Part 9D), for “the following reliefs—” substitute “—
.

4 FA 2007

In Schedule 24 to FA 2007 (penalties for errors), in paragraph 28(fa) (meaning of “corporation tax credit”), before paragraph (iv) insert—
.

5 CTA 2009

1 CTA 2009 is amended as follows.
2 For sections 808 to 808E substitute—
3 In section 1040ZA (restrictions on claiming other reliefs where R&D relief given), before subsection (1) insert—
4 In Schedule 4 (index of defined expressions), at the appropriate places insert—
;
;
;
;
;
;
;
;
;
;
;
;
;
;
;
;
;
;
;
;
;
;
;
;
;
;
;
.

6 CTA 2010

1 CTA 2010 is amended as follows.
2 In section 45A(3) (conditions for carrying forward trade loss against total profits), in paragraph (b)(ii), after “section” insert “1179BF,”.
3 In Part 8A (profits from exploiting patents etc)—
a in section 357BJB (deductions that are not routine deductions in calculating relevant IP profits)—
i in subsection (1), after paragraph (d) insert—
;
ii after subsection (7) insert—
;
b in section 357CG (adjustments in calculating relevant IP profits), in subsection (4), after paragraph (a) (but not the following “and”) insert—
.
4 In Part 8B (profits taxable at Northern Ireland rate), after Chapter 10 insert—

Part 3 Repeal of existing regimes for films, television programmes and video games

7 In CTA 2009, omit Parts 15 to 15B.

Part 4 Amendments consequential on Part 3

8 Films Act 1985

1 The Films Act 1985 is amended as follows.
2 In section 6 (certification of British films) (as amended by paragraph 2), omit “and film tax relief”.
3 In Schedule 1 (certification of British films) (as amended by paragraph 2)—
a in the heading, omit “and film tax relief”;
b in paragraph 1(1), in the definition of “film production company”, omit the words from “or” to the end.

9 ICTA

1 Section 826 of ICTA (interest on tax overpaid) is amended as follows.
2 In subsection (1), omit paragraphs (f) to (fb).
3 In subsection (3C), omit “film tax credit, television tax credit, video game tax credit,”.
4 In subsection (8A)(b)(ii), omit “or film tax credit or television tax credit or video game tax credit”.
5 In subsection (8BA), omit “or film tax credit or television tax credit or video game tax credit” in both places those words occur.

10 FA 1998

1 Schedule 18 to FA 1998 (company tax returns etc) is amended as follows.
2 In paragraph 10 (certain claims and elections to be included in tax return), omit sub-paragraphs (5) to (7).
3 In paragraph 52 (recovery of excessive payments), in sub-paragraph (2B) (inserted by Schedule 6), omit paragraphs (b) to (d).
4 In paragraph 83S (application of Part 9D), omit sub-paragraphs (a) to (c).

11 FA 2007

In Schedule 24 to FA 2007 (penalties for errors), in paragraph 28(fa) (meaning of “corporation tax credit”), omit paragraphs (iv) to (ivb).

12 CTA 2009

1 CTA 2009 is amended as follows.
2 In section 1040ZA (restrictions on claiming other reliefs where R&D relief given), omit subsections (1) to (3).
3 In section 1310(4) (orders and regulations subject to affirmative procedure), omit paragraphs (a) to (ej).
4 In Schedule 4 (index of defined expressions), omit the following entries—
;
;
;
;
;
;
;
;
;
;
;
;
;
;
;
;
;
;
;
;
;
;
;
;
;
;
;
;
;
;
;
;
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;
;
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;
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;
.

13 FA 2009

In paragraph 2 of Schedule 54A to FA 2009 (amounts of overpaid repayment interest recoverable as late payment interest), omit paragraphs (e) to (g).

14 CTA 2010

1 CTA 2010 is amended as follows.
2 In section 45A(3) (conditions for carrying forward trade loss against total profits), in paragraph (b)(ii), omit “1209, 1216DA, 1217DA,”.
3 In section 45B(1) (cases in which trade loss carried forward against trade profits)—
a in paragraph (d), omit “, 2”;
b omit Case 2.
4 In section 357BI (excluded debits under Part 8A), omit paragraphs (c) and (d) (but not the following “and”).
5 In section 357BJB (deductions that are not routine deductions under Part 8A), omit subsections (1)(e) and (f), (8) and (9).
6 In section 357CG (adjustments in calculating relevant IP profits under Part 8A)—
a in subsection (3), omit paragraphs (c) and (d);
b omit subsection (5A);
c in subsection (6)—
i for “subsections (5) and (5A)” substitute “subsection (5)”;
ii omit the following definitions—
;
;
;
;
;
.
7 Omit section 357CHA (deemed shortfall in television or video game expenditure for purposes of adjusting relevant IP profits).
8 In Part 8B (profits taxable at Northern Ireland rate), omit Chapters 11 to 13.

15 FA 2016

In Schedule 24 to FA 2016 (tax advantages constituting the grant of state aid), in Part 1, in the table headed “Creative tax reliefs”, omit the entries for film tax relief, television tax reliefs and video games tax relief.

Part 5 Commencement and transitional provision

16 General commencement

1 No election under section 1179B(1) of CTA 2009 may be made in a company tax return for an accounting period ending before 1 January 2024.
2 The amendments made by Parts 3 and 4 of this Schedule have effect in relation to accounting periods beginning on or after 1 April 2027.

17 Closure of existing regimes to new productions

A company is not to be treated as carrying on a separate trade under Part 15, 15A or 15B of CTA 2009 if the trade would be treated under that Part as beginning on or after 1 April 2025.

18 Opting into new regime during transitional period

1 If a company makes an election under section 1179B(1) of CTA 2009 in its company tax return for an accounting period beginning before 1 January 2024—
a Part 14A of CTA 2009 applies further to that election only in respect of the portion of the accounting period that falls on or after that date, and
b the relevant existing regime applies in respect of the portion of the accounting period that falls before that date.
2 If a company makes an election under section 1179B(1) of CTA 2009 in its company tax return for an accounting period beginning on or after 1 January 2024, the relevant existing regime does not apply in relation to that accounting period or any subsequent accounting period, subject to sub-paragraphs (3) and (4).
3 If a company makes an election under section 1179B(1) of CTA 2009 in its company tax return for an accounting period beginning on or before but ending after the relevant closure date, it may further elect in the return for sub-paragraph (4) to apply.
4 If it does so—
a Part 14A of CTA 2009 applies further to the election under section 1179B(1) of CTA 2009 only in respect of the portion of the accounting period that falls after the relevant closure date, and
b the relevant existing regime applies in respect of the portion of the accounting period that falls on or before that date.
5 Where, by virtue of this paragraph, different Parts of CTA 2009 apply in respect of different portions of an accounting period, the portions are to be treated as separate accounting periods for the purposes of—
a those Parts, and
b paragraphs 19 to 24A (but not for other corporation tax purposes).
6 For the purposes of this paragraph—
a the “relevant existing regime” means—
i Part 15 of CTA 2009, if the election under section 1179B(1) of that Act relates to a film;
ii Part 15A of CTA 2009, if the election under section 1179B(1) of that Act relates to a television programme;
iii Part 15B of CTA 2009, if the election under section 1179B(1) of that Act relates to a video game;
b references to the application of the relevant existing regime are to its application in relation to that film, television programme or video game;
c the “relevant closure date” is—
i 31 March 2025, in the case of a film or television programme whose principal photography has not begun, or a video game whose production has not begun, by the end of that date;
ii 31 March 2027, in any other case.
7 Nothing in this paragraph expands the circumstances in which the relevant existing regime can apply (except by making it apply in respect of a portion of an accounting period).

19 Productions not moving into new regime

1 Sub-paragraphs (2) and (3) apply if, but for this paragraph, Part 15, 15A or 15B of CTA 2009 would apply to a company in relation to a film, television programme or video game in respect of an accounting period beginning on or before but ending after the relevant closure date.
2 The company is to be treated for the purposes of the Part in question as if, at the end of the relevant closure date, it—
a ceased the separate trade that it is treated as carrying on under that Part, and
b abandoned its activities in relation to the film, television programme or video game.
3 No election under section 1179B(1) of CTA 2009 may be made in relation to the film, television programme or video game.
4 The date that is the relevant closure date for the purposes of paragraph 18 is also the relevant closure date for the purposes of this paragraph.

20 Continuity between regimes: taxation as separate trade

1 Sub-paragraphs (2) to (5) apply if—
a a company is treated as carrying on a separate trade under Part 15, 15A or 15B of CTA 2009 in an accounting period (“AP1”),
b in the next accounting period (“AP2”), the company is treated as carrying on a separate trade under Part 14A of CTA 2009, and
c both trades relate to the same film, television programme or video game.
2 The separate trade that the company is treated as carrying on in AP2 is to be treated as a continuation of the separate trade that the company was treated as carrying on in AP1.
3 Accordingly, section 1179BA(2) of CTA 2009 does not apply.
4 If a new period of account does not begin when AP2 begins, a new period of account is to be treated as beginning at that time for the purposes of—
a section 1189, 1216BA or 1217BA of CTA 2009 (as it applies in relation to AP1), and
b section 1179BB of CTA 2009 (as it applies in relation to AP2).
5 For the purposes of section 1179BB(3) of CTA 2009 as it applies in relation to AP2, the references to the corresponding amounts for the previous period are to be read as references to the corresponding amounts brought into account under section 1189, 1216BA or 1217BA of that Act for AP1.

21 Continuity between regimes: calculation of expenditure credit

1 Sub-paragraphs (3) and (4) apply if—
a a company is entitled to audiovisual expenditure credit or video game expenditure credit under Chapter 3 of Part 14A of CTA 2009 for an accounting period, and
b in respect of an earlier accounting period, the company was entitled to, and claimed—
i film tax relief under Chapter 3 of Part 15 of CTA 2009,
ii television tax relief under Chapter 3 of Part 15A of that Act, or
iii video games tax relief under Chapter 3 of Part 15 of that Act, and
c both entitlements relate to the same film, television programme or video game.
2 In those sub-paragraphs, the earliest accounting period within sub-paragraph (1)(a) is “AP2” and the latest accounting period within sub-paragraph (1)(b) is “AP1”.
3 For the purposes of step 1 in section 1179CA(1) of CTA 2009 as it applies in relation to AP2, the reference to relevant global expenditure includes the amount that was “qualifying expenditure incurred to date” for the purposes of section 1200(1) or (2), 1216CG(1) or (2) or 1217CG(1) or (2) of that Act in relation to AP1.
4 For the purposes of step 4 in section 1179CA(1) of CTA 2009 as it applies in relation to AP2, the reference to the company’s qualifying expenditure to date in the accounting period for which it was last entitled to, and claimed, an expenditure credit is to be read as a reference to the amount taken as ‘E’ for the purposes of section 1200(1) or (2), 1216CG(1) or (2) or 1217CG(1) or (2) of that Act in relation to AP1.

22 Continuity between regimes: British certification

1 Regulations made before the passing of this Act under a provision of CTA 2009 specified in the first column of the following table—
a have effect for the purposes of Part 14A of CTA 2009 as if made under the provision of that Part specified in the corresponding entry in the second column of the table, and
b are for those purposes to be read subject to any necessary modifications.
TABLE
Existing provision in Part 15A or 15B of CTA 2009New provision in Part 14A of CTA 2009
Section 1216CB(2)Section 1179DK(1)
Section 1216CC(7)Section 1179DL(7)
Section 1217CB(2)Section 1179FD(1)
Section 1217CC(7)Section 1179FE(7)
2 A certificate issued under section 1216CD or 1217CD of CTA 2009 continues to have effect for the purposes of Part 14A of that Act as if it were a certificate issued under section 1179DM or (as the case may be) 1179FF in that Part.
3 In relation to such a certificate, the references to revocation or ceasing to be in force in sections 1216EA and 1217EA of CTA 2009 (as they continue to apply in relation to accounting periods beginning before 1 April 2027) include revocation or ceasing to be in force under section 1179DM or (as the case may be) 1179FF of that Act.
4 The repeal of Parts 15, 15A and 15B of CTA 2009 does not affect the requirement in section 1213(3), 1216EA(3) or 1217EA(3) of that Act so far as it relates to entitlements in accounting periods beginning before 1 April 2027 (even if the “completion period” begins on or after that date).
5 In sections 1216EA(3) and (5) and 1217EA(3) and (5) of CTA 2009 (as they continue to apply in relation to accounting periods beginning before 1 April 2027), the references to a final certificate include reference to a final certificate issued under section 1179DM or (as the case may be) 1179FF of that Act.

23 Continuity between regimes: UK expenditure (films and television programmes)

The repeal of Parts 15 and 15A of CTA 2009 does not affect the requirement in section 1214(3) or 1216EB(3) of that Act, so far as it relates to entitlements in accounting periods beginning before 1 April 2027 (even if the “completion period” begins on or after that date).

24 Transition of video games from European expenditure condition to UK expenditure condition

1 Sub-paragraphs (3) and (4) apply if—
a a company makes an election under section 1179B(1) in relation to a video game in its company tax return for an accounting period (“the opt-in period”),
b no earlier accounting period was the completion period, and
c in an earlier accounting period, the company was entitled to, and claimed, special video games relief in respect of that video game.
2 In this paragraph, “special video games relief” and “completion period” have the meanings given by section 1217E(1) of CTA 2009.
3 Subsections (3) and (4) of section 1217EB of CTA 2009 apply as if the video game had been completed at the end of the accounting period preceding the opt-in period (and, accordingly, as if that period were the completion period).
4 In section 1179FH of CTA 2009 as it applies in relation to the video game, the references to core expenditure are to be read as limited to core expenditure incurred in or after the opt-in period.

24A Calculation of expenditure credit where company previously benefiting from video games tax relief

1 Sub-paragraph (2) applies if—
a a company makes an election under section 1179B(1) of CTA 2009 in relation to a video game in its company tax return for an accounting period, and
b in an earlier accounting period, the company was entitled to, and claimed, special video games relief (within the meaning of section 1217E(1) of CTA 2009) in respect of that video game.
2 Section 1179CA(1) of CTA 2009 (amount of expenditure credit) has effect as if for Step 2 there were substituted—

25 Transfer of terminal losses between productions in existing and new regimes

1 In section 1179BG(1)(a) of CTA 2009, the reference to the separate production trade is to be read as including reference to a separate trade carried on under Part 15, 15A or 15B of CTA 2009.
2 Section 1179BG(1)(d) of CTA 2009 is to be taken as satisfied where—
a the ceased trade was carried on under Part 15 or 15A of CTA 2009 and the other trade relates to a film or television programme, or
b the ceased trade was carried on under Part 15B of CTA 2009 and the other trade relates to a video game.
3 Paragraphs (a) and (b) of section 1211(1) of CTA 2009 are to be taken as satisfied where a company ceases to carry on a separate production trade under Part 14A of CTA 2009 in relation to a film (and that company and that trade are respectively “company A” and “trade X” in the resulting application of section 1211).
4 Paragraphs (a) and (b) of section 1216DC(1) of CTA 2009 are to be taken as satisfied where a company ceases to carry on a separate production trade under Part 14A of CTA 2009 in relation to a television programme (and that company and that trade are respectively “company A” and “trade X” in the resulting application of section 1216DC).
5 Paragraphs (a) and (b) of section 1217DC(1) of CTA 2009 are to be taken as satisfied where a company ceases to carry on a separate production trade under Part 14A of CTA 2009 in relation to a video game (and that company and that trade are respectively “company A” and “trade X” in the resulting application of section 1217DC).

Schedule 3 

Theatrical productions

Section 4

Part 1 Amendments of Part 15C of CTA 2009

1 Introduction

Part 15C of CTA 2009 (theatrical productions) is amended as follows.

2 Meaning of “theatrical production”

1 Section 1217FA (meaning of “theatrical production”) is amended as follows.
2 In subsection (2)—
a in the words before paragraph (a), for “relevant” substitute “other”;
b for paragraph (a) substitute—
;
c after paragraph (ba) (but before the following “and”) insert—
.
3 Omit subsection (3A).
4 Those amendments have effect in relation to a theatrical production the production phase of which begins on or after 1 April 2024.

3 Meaning of “core expenditure”

1 In section 1217GC(2) (expenditure that is not “core expenditure” on theatrical production), in paragraph (a), for “or storage” substitute “, storage, or the provision of incidental goods or services to members of the audience”.
2 That amendment has effect in relation to expenditure incurred on or after 1 April 2024.

4 Provision to emphasise that capital expenditure does not generally qualify for relief

In section 1217IC (costs of theatrical production), in subsection (3), at the end insert—

5 UK expenditure threshold to replace EEA expenditure threshold

1 In section 1217GB (European expenditure condition)—
a in the heading, for “European” substitute “UK”;
b in subsection (1)—
i for “European” (in both places it occurs) substitute “UK”;
ii for “25%” substitute “10%”;
c for subsection (2) substitute—
;
d in subsection (3), for “European and non-European expenditure” substitute “expenditure that is and is not UK expenditure”;
e in subsection (5), for “European” substitute “UK”.
2 In each of the following provisions, for “European” (in each place it occurs) substitute “UK”—
a section 1217G(1)(b) (conditions for production to qualify for relief);
b section 1217N(2) (provisional satisfaction of European expenditure condition);
c section 1217NA(1), (2) and (3) (European expenditure condition provisionally satisfied not later satisfied).
3 In section 1217OB (defined terms)—
a omit the definitions of “European expenditure” and “European expenditure condition”;
b at the end insert—
4 In Schedule 4 (index of defined expressions)—
a omit the entries for “European expenditure (in Part 15C)” and “European expenditure condition (in Part 15C)”;
b at the appropriate places insert—
;
.
5 For transitional provision in relation to this paragraph, see paragraph 11.

6 EEA expenditure not to qualify for relief

1 In section 1217J(2) and (3) (amount of relief for theatrical production), for “European” substitute “UK”.
2 For transitional provision in relation to this paragraph, see paragraph 12.

7 Profit element of non-arm's-length payments to connected parties not to qualify for relief

1 Section 1217JA (expenditure on theatrical productions that qualifies for relief) is amended as follows.
2 In subsection (1)(b), after “(2)” insert “or (3)”.
3 After subsection (2) insert—
4 Those amendments have effect in relation to expenditure incurred on or after 1 April 2024.

8 Amendment of R&D exclusion

1 In section 1217JA (expenditure qualifying for theatre relief), for subsection (2) substitute—
a in paragraph (a), for “is entitled to” substitute “would be able to claim”;
b in paragraph (b), for “has obtained” substitute “would be able to claim”.
2 Those amendments have effect in relation to expenditure incurred on or after 1 April 2024.

9 Restriction where tax liabilities outstanding: meaning of “payment period”

In section 1217KB (payment in respect of theatre tax credit), after subsection (4) insert—

10 Relief not to be available for companies in insolvency

1 After section 1217KC insert—
2 That amendment has effect in relation to claims made on or after 1 April 2024.

Part 2 Changes from European to UK expenditure: transitional provision

11 Transitional provision in relation to paragraph 5

1 This paragraph makes transitional provision in connection with paragraph 5.
2 The amendments made by that paragraph do not apply in relation to a theatrical production if—
a it has entered production before 1 April 2024, and
b the separate theatrical trade in respect of it ceases before 1 April 2025.
3 Sub-paragraph (4) applies if—
a a theatrical production has entered production before 1 April 2024,
b the separate theatrical trade in respect of the production continues on or after 1 April 2025,
c the production company’s company tax return for the first accounting period that ends on or after 1 April 2025 is accompanied by a statement of the amount of the core expenditure on the theatrical production incurred before 1 April 2025 that is European expenditure, and
d that statement shows that, in respect of core expenditure incurred before 1 April 2025, the European expenditure condition is met.
4 The company’s entitlement to—
a an additional deduction under section 1217H of CTA 2009, or
b a tax credit under section 1217K of that Act,
is unaffected by a failure to meet the UK expenditure condition so far as the entitlement derives from expenditure incurred before 1 April 2025.
5 For the purposes of sub-paragraph (4), an entitlement to a tax credit under section 1217H of CTA 2009 derives from expenditure incurred before 1 April 2025 to the extent that it would arise if only costs incurred and income received before that date were taken into account in calculating the surrenderable loss of the company for the purposes of section 1217KA of that Act.
6 Sub-paragraph (7) applies in relation to a theatrical production in respect of which the separate theatrical trade continues on or after 1 April 2025.
7 The reference in section 1217NA(1) of CTA 2009, as amended by paragraph 5, to a statement having been made under section 1217N(2) of that Act includes reference to a statement having been made in relation to the European expenditure condition under that provision before it was amended by paragraph 5.
8 But the application of section 1217NA(1) of CTA 2009 as so amended is subject to sub-paragraph (4) (where that sub-paragraph applies).
9 In this paragraph—
  • “theatrical production”, “separate theatrical trade”, “production company” and “core expenditure” have the same meanings as in Part 15C of CTA 2009;
  • “UK expenditure condition” has the same meaning as in that Part after the amendments made by paragraph 5;
  • “European expenditure” and “European expenditure condition” have the same meanings as in that Part before the amendments made by paragraph 5.
10 For the purposes of this paragraph, a theatrical production “enters production” when core expenditure is first incurred on it.

12 Transitional provision in relation to paragraph 6

1 This paragraph makes transitional provision in relation to paragraph 6.
2 The amendments made by that paragraph have effect in relation to accounting periods ending on or after 1 April 2024.
3 Sub-paragraph (4) applies in a case where expenditure incurred before 1 April 2024 is to be taken into account as qualifying expenditure for the purposes of section 1217J of CTA 2009 (amount of relief for theatrical production).
4 The references in subsections (2) and (3) of that section (as amended by paragraph 6) to so much of the qualifying expenditure incurred to date as is UK expenditure are to be read as references to so much of the qualifying expenditure incurred to date as—
a has been incurred before 1 April 2024 and is European expenditure, or
b has been incurred on or after that date and is UK expenditure.
5 But if the theatrical production in relation to which sub-paragraph (4) applies has entered production before 1 April 2024, the production company may elect for that sub-paragraph to have effect in relation to that production as if “2025” were substituted for “2024”.
6 In this paragraph—
  • “theatrical production”, “production company” and “core expenditure” have the same meanings as in Part 15C of CTA 2009;
  • “UK expenditure” has the same meaning as in that Part after the amendments made by paragraph 5;
  • “European expenditure” has the same meaning as in that Part before the amendments made by paragraph 5.
7 For the purposes of sub-paragraph (5), a theatrical production “enters production” when core expenditure is first incurred on it.

Schedule 4 

Orchestral concerts

Section 5

Part 1 Amendments of Part 15D of CTA 2009

1 Introduction

Part 15D of CTA 2009 (orchestra tax relief) is amended as follows.

2 Time of election for orchestral concerts to be treated as a series

1 In section 1217QA (election for orchestral concerts to be treated as a series), in subsection (1), after “Customs” insert
.
2 That amendment has effect in relation to a series of concerts the first concert in which takes place on or after 1 April 2024.

3 Meaning of “core expenditure”

1 In section 1217RC(3) (expenditure that is not “core expenditure” on orchestral concert), in paragraph (a), for “or storage” substitute “, storage, or the provision of incidental goods or services to members of the audience”.
2 That amendment has effect in relation to expenditure incurred on or after 1 April 2024.

4 Provision to emphasise that capital expenditure does not generally qualify for relief

In section 1217QD (costs of orchestral concert), in subsection (3), at the end insert—

5 UK expenditure threshold to replace EEA expenditure threshold

1 In section 1217RB (European expenditure condition)—
a in the heading, for “European” substitute “UK”;
b in subsection (1)—
i for “European” (in both places it occurs) substitute “UK”;
ii for “25%” substitute “10%”;
c for subsection (2) substitute—
;
d in subsection (3), for “European and non-European expenditure” substitute “expenditure that is and is not UK expenditure”;
e in subsection (5), for “European” substitute “UK”.
2 In each of the following provisions, for “European” (in each place it occurs) substitute “UK”—
a section 1217RA(2)(d) and (4)(d) (need to meet European expenditure condition to qualify for relief);
b section 1217T(2) (provisional satisfaction of European expenditure condition);
c section 1217TA(1), (2) and (3) (European expenditure condition provisionally satisfied not later satisfied).
3 In section 1217U (defined terms)—
a omit the definitions of “European expenditure” and “European expenditure condition”;
b at the end insert—
4 In Schedule 4 (index of defined expressions)—
a omit the entries for “European expenditure (in Part 15D)” and “European expenditure condition (in Part 15D)”;
b at the appropriate places insert—
;
.
5 For transitional provision in relation to this paragraph, see paragraph 11.

6 EEA expenditure not to qualify for relief

1 In section 1217RE(2) and (3) (amount of relief for orchestral concert), for “European” substitute “UK”.
2 For transitional provision in relation to this paragraph, see paragraph 12.

7 Profit element of non-arm's-length payments to connected parties not to qualify for relief

1 Section 1217RF (expenditure that qualifies for orchestra tax relief) is amended as follows.
2 In subsection (1)—
a omit the “and” after paragraph (a);
b after paragraph (b) insert
3 After subsection (2) insert—
4 Those amendments have effect in relation to expenditure incurred on or after 1 April 2024.

8 Amendment of exclusion for other reliefs

1 In section 1217RF(2) (exclusion of expenditure eligible for other creative sector relief)—
a in the words before paragraph (a), for the words from “(assuming” to the end substitute “the company would be able to claim”;
b before paragraph (a) insert—
.
2 Those amendments have effect in relation to expenditure incurred on or after 1 April 2024.

9 Restriction where tax liabilities outstanding: meaning of “payment period”

In section 1217RI (payment in respect of orchestra tax credit), after subsection (4) insert—

10 Relief not to be available for companies in insolvency

1 After section 1217RK insert—
2 That amendment has effect in relation to claims made on or after 1 April 2024.

Part 2 Changes from European to UK expenditure: transitional provision

11 Transitional provision in relation to paragraph 5

1 This paragraph makes transitional provision in relation to paragraph 5.
2 The amendments made by that paragraph do not apply in relation to an orchestral concert or concert series if—
a it has entered production before 1 April 2024, and
b the separate orchestral trade in respect of it ceases before 1 April 2025.
3 Sub-paragraph (4) applies if—
a an orchestral concert or concert series has entered production before 1 April 2024,
b the separate orchestral trade in respect of the concert or series continues on or after 1 April 2025,
c the production company’s company tax return for the first accounting period that ends on or after 1 April 2025 is accompanied by a statement of the amount of the core expenditure on the concert or series incurred before 1 April 2025 that is European expenditure, and
d that statement shows that, in respect of core expenditure incurred before 1 April 2025, the European expenditure condition is met.
4 The company’s entitlement to—
a an additional deduction under section 1217RD of CTA 2009, or
b a tax credit under section 1217RG of that Act,
is unaffected by a failure to meet the UK expenditure condition so far as the entitlement derives from expenditure incurred before 1 April 2025.
5 For the purposes of sub-paragraph (4), an entitlement to a tax credit under section 1217RG of CTA 2009 derives from expenditure incurred before 1 April 2025 to the extent that it would arise if only costs incurred and income received before that date were taken into account in calculating the surrenderable loss of the company for the purposes of section 1217RH of that Act.
6 Sub-paragraph (7) applies in relation to an orchestral concert or concert series in respect of which the separate orchestral trade continues on or after 1 April 2025.
7 The reference in section 1217TA(1) of CTA 2009, as amended by paragraph 5(2)(c), to a statement having been made under section 1217T(2) of that Act includes reference to a statement having been made under that provision in relation to the European expenditure condition.
8 But the application of section 1217TA(1) of CTA 2009 as so amended is subject to sub-paragraph (4) (where that sub-paragraph applies).
9 In this paragraph—
  • “orchestral concert”, “concert series”, “separate orchestral trade”, “production company” and “core expenditure” have the same meanings as in Part 15D of CTA 2009;
  • “UK expenditure condition” has the same meaning as in that Part after the amendments made by paragraph 5;
  • “European expenditure” and “European expenditure condition” have the same meanings as in that Part before the amendments made by paragraph 5.
10 For the purposes of this paragraph, an orchestral concert or concert series “enters production” when core expenditure is first incurred on it.

12 Transitional provision in relation to paragraph 6

1 This paragraph makes transitional provision in relation to paragraph 6.
2 The amendments made by that paragraph have effect in relation to accounting periods ending on or after 1 April 2024.
3 Sub-paragraph (4) applies in a case where expenditure incurred before 1 April 2024 is to be taken into account as qualifying expenditure for the purposes of section 1217RE of CTA 2009 (amount of relief for orchestral concert).
4 The references in subsections (2) and (3) of that section (as amended by paragraph 6) to so much of the qualifying expenditure incurred to date as is UK expenditure are to be read as references to so much of the qualifying expenditure incurred to date as—
a has been incurred before 1 April 2024 and is European expenditure, or
b has been incurred on or after that date and is UK expenditure.
5 But if the orchestral concert or concert series in relation to which sub-paragraph (4) applies has entered production before 1 April 2024, the production company may elect for that sub-paragraph to have effect in relation to that concert or series as if “2025” were substituted for “2024”.
6 In this paragraph—
  • “orchestral concert”, “concert series”, “production company” and “core expenditure” have the same meanings as in Part 15D of CTA 2009;
  • “UK expenditure” has the same meaning as in that Part after the amendments made by paragraph 5;
  • “European expenditure” has the same meaning as in that Part before the amendments made by paragraph 5.
7 For the purposes of sub-paragraph (5), an orchestral concert or concert series “enters production” when core expenditure is first incurred on it.

Schedule 5 

Museum and gallery exhibitions

Section 6

Part 1 Amendments of Part 15E of CTA 2009

1 Introduction

Part 15E of CTA 2009 (museum and gallery exhibition tax relief) is amended as follows.

2 Museum and gallery exhibitions not to be wholly remote

1 In section 1218ZAA (meaning of “exhibition”), after subsection (4) insert—
2 That amendment has effect in relation to an exhibition only where the production phase begins on or after 1 April 2024.

3 Meaning of “core expenditure”

1 In section 1218ZCD(7) (expenditure that is not “core expenditure” on museum or gallery exhibition), in paragraph (a), for “and promotional events” substitute “, promotional events, and the provision of incidental goods or services to visitors”.
2 That amendment has effect in relation to expenditure incurred on or after 1 April 2024.

4 UK expenditure threshold to replace European expenditure threshold

1 In section 1218ZCC (European expenditure condition)—
a in the heading, for “European” substitute “UK”;
b in subsection (1)—
i for “European” (in both places it occurs) substitute “UK”;
ii for “25%” substitute “10%”;
c for subsection (2) substitute—
;
d in subsection (3), for “European and non-European expenditure” substitute “expenditure that is and is not UK expenditure”;
e in subsection (5), for “European” substitute “UK”.
2 In each of the following provisions, for “European” (in each place it occurs) substitute “UK”—
a section 1218ZCA(5) (need to meet European expenditure condition to qualify for relief);
b section 1218ZE(2) (provisional satisfaction of European expenditure condition);
c section 1218ZEA(1), (2) and (3) (European expenditure condition provisionally satisfied not later satisfied).
3 In section 1218ZFA (defined terms)—
a omit the definitions of “European expenditure” and “European expenditure condition”;
b at the end insert—
4 In Schedule 4 (index of defined expressions)—
a omit the entries for “European expenditure (in Part 15E)” and “European expenditure condition (in Part 15E)”;
b at the appropriate places insert—
;
.
5 For transitional provision in relation to this paragraph, see paragraph 10.

5 EEA expenditure not to qualify for relief

1 In section 1218ZCF(2) and (3) (amount of relief for museum or gallery exhibition), for “European” substitute “UK”.
2 For transitional provision in relation to this paragraph, see paragraph 11.

6 Profit element of non-arm's-length payments to connected parties not to qualify for relief

1 Section 1218ZCG (expenditure that qualifies for museums and galleries exhibition tax relief) is amended as follows.
2 In subsection (1), after paragraph (b) (but before the following “and”) insert—
.
3 After subsection (2) insert—
4 Those amendments have effect in relation to expenditure incurred on or after 1 April 2024.

7 Amendment of exclusion for R&D relief and other creative sector reliefs

1 In section 1218ZCG(2) (exclusion of expenditure eligible for R&D relief or other creative sector relief), in the words before paragraph (a), for the words from “(assuming” to the end substitute “the company would be able to claim”.
2 That amendment has effect in relation to expenditure incurred on or after 1 April 2024.

8 Restriction where tax liabilities outstanding: meaning of “payment period”

In section 1218ZCJ (payment in respect of museums and galleries exhibition tax credit), after subsection (4) insert—

9 Relief not to be available for companies in insolvency

1 After section 1218ZCL insert—
2 That amendment has effect in relation to claims made on or after 1 April 2024.

Part 2 Changes from European to UK expenditure: transitional provision

10 Transitional provision in relation to paragraph 4

1 This paragraph makes transitional provision in relation to paragraph 4.
2 The amendments made by that paragraph do not have effect in relation to an exhibition if—
a it has entered production before 1 April 2024, and
b the separate exhibition trade in respect of it ceases before 1 April 2025.
3 Sub-paragraph (4) applies if—
a an exhibition has entered production before 1 April 2024,
b the separate exhibition trade in respect of the exhibition continues on or after 1 April 2025,
c the production company’s company tax return for the first accounting period that ends on or after 1 April 2025 is accompanied by a statement of the amount of the core expenditure on the exhibition incurred before 1 April 2025 that is European expenditure, and
d that statement shows that, in respect of core expenditure incurred before 1 April 2025, the European expenditure condition is met.
4 The company’s entitlement to—
a an additional deduction under section 1218ZCE of CTA 2009, or
b a tax credit under section 1218ZCH of that Act,
is unaffected by a failure to meet the UK expenditure condition so far as the entitlement derives from expenditure incurred before 1 April 2025.
5 For the purposes of sub-paragraph (4), an entitlement to a tax credit under section 1218ZCH of CTA 2009 derives from expenditure incurred before 1 April 2025 to the extent that it would arise if only costs incurred and income received before that date were taken into account in calculating the surrenderable loss of the company for the purposes of section 1218ZCI of that Act.
6 Sub-paragraph (7) applies in relation to an exhibition in respect of which the separate exhibition trade continues on or after 1 April 2025.
7 The reference in section 1218ZEA(1) of CTA 2009, as amended by paragraph 4(2)(c), to a statement having been made under section 1218ZE(2) of that Act includes reference to a statement having been made under that provision in relation to the European expenditure condition.
8 But the application of section 1218ZEA(1) of CTA 2009 as so amended is subject to sub-paragraph (4) (where that sub-paragraph applies).
9 In this paragraph—
  • “exhibition”, “separate exhibition trade”, “production company” and “core expenditure” have the same meanings as in Part 15E of CTA 2009;
  • “UK expenditure” and “UK expenditure condition” have the same meanings as in that Part after the amendments made by paragraph 4;
  • “European expenditure” and “European expenditure condition” have the same meanings as in that Part before the amendments made by paragraph 4.
10 For the purposes of this paragraph, an exhibition “enters production” when core expenditure is first incurred on it.

11 Transitional provision in relation to paragraph 5

1 This paragraph makes transitional provision in relation to paragraph 5.
2 The amendments made by that paragraph have effect in relation to accounting periods ending on or after 1 April 2024.
3 Sub-paragraph (4) applies in a case where expenditure incurred before 1 April 2024 is to be taken into account as qualifying expenditure for the purposes of section 1218ZCF of CTA 2009 (amount of relief for museum or gallery exhibition).
4 The references in subsections (2) and (3) of that section (as amended by paragraph 5) to so much of the qualifying expenditure incurred to date as is UK expenditure are to be read as references to so much of the qualifying expenditure incurred to date as—
a has been incurred before 1 April 2024 and is European expenditure, or
b has been incurred on or after that date and is UK expenditure.
5 But if the exhibition in relation to which sub-paragraph (4) applies has entered production before 1 April 2024, the production company may elect for that sub-paragraph to have effect in relation to that exhibition as if “2025” were substituted for “2024”.
6 In this paragraph—
  • “exhibition”, “production company” and “core expenditure” have the same meanings as in Part 15E of CTA 2009;
  • “UK expenditure” has the same meaning as in that Part after the amendments made by paragraph 4;
  • “European expenditure” has the same meanings as in that Part before the amendments made by paragraph 4.
7 For the purposes of sub-paragraph (5), an exhibition “enters production” when core expenditure is first incurred on it.

Schedule 6 

Administration of creative sector reliefs

Section 7

1 Power to recover overpayments

1 Paragraph 52 of Schedule 18 to FA 1998 (recovery of excessive payments) is amended as follows.
2 In sub-paragraph (1), in the words before paragraph (a), for “paragraph” substitute “sub-paragraph”.
3 In sub-paragraph (2)—
a for “This paragraph” substitute “Sub-paragraph (1)”;
b omit paragraphs (bd) to (bi).
4 In sub-paragraph (2A), after paragraph (c) insert
.
5 After sub-paragraph (2A) insert—
6 In sub-paragraph (5)—
a omit paragraphs (ae) and (ag) to (ak);
b before paragraph (b) insert—
;
c in the words after paragraph (b), for the words from “the” to the end substitute “that accounting period”.
7 Those amendments have effect in relation to accounting periods beginning on or after 1 April 2024.

2 Time limit for claims

1 In paragraph 83W(1) of Schedule 18 to FA 1998 (time limits for claims under Parts 15 to 15E of CTA 2009), for the words from “first” to the end substitute
2 That amendment has effect in relation to accounting periods beginning on or after 1 April 2024.

3 Supporting information

1 After paragraph 83W of Schedule 18 to FA 1998 insert—
2 That amendment has effect in relation to claims made on or after 1 April 2024.

Schedule 7 

Real Estate Investment Trusts

Section 8

1 Amendment of CTA 2010

CTA 2010 is amended in accordance with paragraphs 2 to 10.

2 CoACS to be institutional investors

In Section 528 (conditions for company), in subsection (4A), after paragraph (b) insert—
.

3 Non-close condition

1 Section 528 is amended as follows.
2 In subsection (4)—
a in the words before paragraph (a), after “company” insert “meets the non-close condition.”, and
b omit paragraphs (a) and (b).
3 After subsection (4B) insert—
4 In subsection (5), for “subsection (4)(a)” substitute “determining whether the non-close condition is met”.
5 After subsection (5A) (as inserted by paragraph 4) insert—
6 Section 528 has effect, and is to be deemed always to have had effect, with the amendments made by this paragraph.

4 Certain institutional investors required to meet GDO or non-close condition

1 Section 528 is further amended as follows.
2 In subsection (4A)—
a in paragraph (a)—
i in sub-paragraph (i), after “2000)” insert “that meets the genuine diversity of ownership condition (see section 528ZB(2)) or the non-close condition”, and
ii in sub-paragraph (ii), after “Act)” insert “and that meets the genuine diversity of ownership condition or the non-close condition”,
b in paragraph (b)—
i in sub-paragraph (i), after “Act” insert “and that meets the genuine diversity of ownership condition or the non-close condition”,
ii in sub-paragraph (ii), for “and” substitute “that”, and
iii in that sub-paragraph, after “2000)” insert “and that meets the genuine diversity of ownership condition or the non-close condition”,
c in paragraph (c), after “2000)” insert “that meets the genuine diversity of ownership condition or the non-close condition”, and
d in paragraph (e), after “who” insert “meets the non-close condition and who”.
3 After subsection (4C) (as inserted by paragraph 3) insert—
4 In subsection (5) (as amended by paragraph 3)—
a the words from “a company” to the end become paragraph (a),
b after that paragraph insert
5 After subsection (5) insert—
6 After subsection (5C) (as inserted by paragraph 3) insert—
7 In section 528ZA, in subsection (7), for the words from “which” to the end substitute “if a person acting on behalf of it would be an institutional investor as a result of section 528(4A)(c)”.
8 In section 528ZB—
a for the heading substitute “Genuine diversity of ownership condition”,
b omit subsection (1),
c omit subsection (5), and
d in subsection (7), after “section” insert
.
9 In consequence of the other amendments made by this paragraph, in Schedule 5AAA to TCGA 1992, in paragraph 46(3)(a), for “section 528(4A)(a), (b), (c), (i) or (j)” substitute “section 528(4A)(i) or (j)“.

5 Paragraph 4: transitional provision

1 Sub-paragraph (2) applies where—
a immediately before the day on which this Act is passed, a company that is a company UK REIT or the principal member of a group UK REIT, met the conditions in section 528 of CTA 2010, and
b the company ceases to meet one or more of those conditions on that day as a result of one or more persons ceasing to be regarded as institutional investors as a result of the amendments made by paragraph 4.
2 Part 12 of CTA 2010 has effect in relation to such a person for the purposes of determining whether the company meets those conditions as if the amendments made by paragraph 4 had not been made for so long as the person’s interest in the company as a proportion of all interests in the company—
a does not increase as a result of the acquisition by the person of further interests in the company, and
b continuously remains relevant to the question of whether those conditions are met.
3 Sub-paragraph (4) applies where—
a immediately before the day on which this Act is passed, a collective investment vehicle, or a company that is not a collective investment vehicle, (“the reliant entity”) relied on its having a qualifying investor as a direct or indirect participator for the purpose of any provision of Schedule 5AAA to TCGA 1992 (“a qualifying purpose”), and
b the qualifying investor (“the former qualifying investor”) ceased to be a qualifying investor a result of the amendments made by paragraph 4.
4 That Schedule has effect in relation to the former qualifying investor for a qualifying purpose as if the amendments made by paragraph 4 had not been made for so long as—
a the investor’s interest in the reliant entity as a proportion of all interests in the entity does not increase as a result of the acquisition by the investor of further interests in the reliant entity, and
b the investor being a direct or indirect participator in the reliant entity continuously remains relevant for at least one qualifying purpose.
5 Sub-paragraph (6) applies when determining whether a collective investment scheme constituted before the day on which this Act is passed meets the genuine diversity of ownership condition for the purposes of any of paragraphs (a) to (c) of section 528(4A).
6 Regulation 75(2) of the Offshore Funds (Tax) Regulations 2009 (including as it applies for the purposes of regulation 75(5) of those Regulations) has effect, for those purposes, as if it referred to a statement prepared by the manager of the scheme (instead of the documents referred to in that paragraph) which—
a is available to HMRC,
b specifies the intended categories of investor when the scheme was marketed,
c confirms that the interests in the scheme were made widely available, and
d confirms that interests in the scheme were marketed and made available in accordance with the requirements of regulation 75(4)(a) of those Regulations (and that provision is to be read accordingly).

6 Insurance companies may be included in group UK REIT

1 Section 606 (meaning of group) is amended as follows.
2 In subsection (2), omit paragraphs (b) and (c) (but not the “or” at the end of paragraph (c)).
3 In subsection (5), omit the definitions of “insurance company” and “insurance subsidiary”.

7 Property financing costs

1 Section 544 (meaning of “property profits” and “property financing costs”) is amended as follows.
2 In subsection (3)(a), for “property rental business of members of the group” substitute “the group's property rental business in the United Kingdom”.
3 After subsection (3) insert—
4 Section 544 has effect, and is to be deemed always to have had effect, with the amendments made by sub-paragraphs (2) and (3).
5 After subsection (4) insert—
6 The amendment made by sub-paragraph (5) has effect for accounting periods ending on or after 1 April 2023.

8 Single property rule

In section 529 (conditions as to property rental business)—
a in subsection (2A)—
i after “is” insert “, or was at any time from the relevant time,”,
ii for “exceeds” substitute “in excess of”, and
iii omit “at the relevant time”, and
b in subsection (2B)—
i in the words before paragraph (a), after “means” insert “the later of”
ii for paragraphs (a) and (b) substitute—

9 Disposal of rights or interests in UK property rich funds

1 Section 535A (disposals of rights or interests in UK property rich companies) is amended as follows.
2 After subsection (7) insert—
3 In subsection (8) after “subsection (7)” insert “or (7A)”.

10 Holders of excessive rights

1 In section 551 (tax consequences of distribution to holder of excessive rights), in subsection (1)(a), for “(as” substitute “that is not an excluded holder (both as”.
2 In section 553 (meaning of “holder of excessive rights”)—
a in the heading, after “rights”” insert “and “excluded holder”,
b in subsection (1), omit the words after paragraph (b), and
c after subsection (4) insert—

11 Corporate interest restriction and disposal of interests in UK property rich companies

1 Section 452 of TIOPA 2010 (corporate interest restriction: REITs) is amended as follows.
2 In subsection (1)(b), after “(5)” insert “, or section 535A(2),”.
3 In subsection (4)(b), after “(5)” insert “, or section 535A(2),”.

Schedule 8 

Tonnage tax

Section 9

1 Introduction

Schedule 22 to FA 2000 (tonnage tax) is amended as follows.

2 Qualifying companies to include companies managing qualifying ships

1 In paragraph 16 (qualifying companies and groups), in sub-paragraph (1)(b), after “operates” insert “or manages”.
2 After paragraph 18 insert—

3 Daily profits of managed ships

1 Paragraph 4 (tonnage tax profits: method of calculation) is amended as follows.
2 In sub-paragraph (1), after “operated” insert “or managed”.
3 In sub-paragraph (2), for Step One substitute—
.

4 Tonnage tax activities include activities in managing ships

In paragraph 46 (core qualifying activities)—
a in sub-paragraph (1)—
i in paragraph (a), after “operating” insert “or managing”, and
ii in paragraph (b), after “operating” insert “or managing”, and
b after sub-paragraph (2) insert—

5 Effect of temporarily ceasing to manage or operate qualifying ships

In paragraph 17 (effect of temporarily ceasing to operate qualifying ships)—
a in sub-paragraph (1) after “operate”, in both places it occurs, insert “or manage”,
b in sub-paragraph (2), in paragraph (a), after “operating” insert “or managing”,
c in that sub-paragraph, in the words after paragraph (b)—
i after “operate” insert “or manage”,
ii after “operated” insert “or managed”, and
d in sub-paragraph (4)—
i in paragraph (a), after “operating” insert “or managing”, and
ii in paragraph (b), after “operates” insert “or manages”.

6 Training requirement

In paragraph 23 (the training requirement), after sub-paragraph (2) insert—

7 Disapplication of 75% limit for ship managers

1 In paragraph 37 (75% charter limit)—
a in sub-paragraph (1), in the words before paragraph (a), after “of” insert “a relevant company or group”, and
b after sub-paragraph (5) insert—
2 In paragraph 49 (distributions of oversea shipping companies), in sub-paragraph (2), in paragraph (c), after “that” insert “, where the overseas company operates qualifying ships,”.

8 Commencement

The amendments made by this Schedule have effect in relation to tonnage tax elections made on or after 1 April 2024.

Schedule 9 

Pensions

Section 14

Part 1 Abolition of lifetime allowance charge

1 Part 4 of FA 2004 (pension schemes etc) is amended as follows.
2 In section 204 (tax charges: authorised pensions and lump sums), after subsection (2) insert—
3 Omit sections 214 to 226 (lifetime allowance charge) and the italic heading before those sections.
4
1 Section 232 (annual allowance charge: cash balance arrangements: adjustments of closing value) is amended as follows.
2 In subsection (8A)(c)—
a omit “or, but for paragraph 15A of Schedule 32, would occur”;
b for “lifetime allowance excess lump sum” substitute “pension commencement excess lump sum”.
3 In subsection (8D)—
a in paragraph (a) omit “or benefit crystallisation event 5, 5A or 5B occurs in relation to the individual and the pension scheme”;
b in paragraph (b) omit “or the benefit crystallisation event occurs”.
4 After subsection (8D) insert—
5
1 Section 236 (annual allowance charge: defined benefits arrangements: adjustments of closing value) is amended as follows.
2 In subsection (8A)(c) for “lifetime allowance excess lump sum” substitute “pension commencement excess lump sum”.
3 In subsection (8D)—
a in paragraph (a) omit “or benefit crystallisation event 5, 5A or 5B occurs in relation to the individual and the pension scheme”;
b in paragraph (b) omit “or the benefit crystallisation event occurs”.
4 After subsection (8D) insert—
6 In section 237B (annual allowance: liability of scheme administrator), in subsection (6) omit the words from “or benefit crystallisation event 5” to the end.
7 In section 255 (assessments under Part 4 of FA 2004), in subsection (1) omit paragraph (c).
8 Omit section 267 (discharge of liability of scheme administrator to lifetime allowance charge).
9
1 Section 269 (appeal against decision on discharge of liability) is amended as follows.
2 In subsection (1)—
a in paragraph (a) omit “section 267(2) (discharge of liability to lifetime allowance charge)”;
b omit paragraph (b) (and the “or” before it).
3 In subsection (6) omit “lifetime allowance charge,”.
4 Omit subsections (9) to (11).
10 In section 272A (liabilities of independent trustee), in subsection (7) omit paragraph (b).
11 In section 280 (abbreviations and general index), in the table in subsection (2) omit the entries for the following—
  • active membership period;
  • amount crystallised;
  • available (in relation to a person’s lifetime allowance);
  • benefit crystallisation event;
  • lifetime allowance (in relation to a person);
  • lifetime allowance charge;
  • lifetime allowance enhancement factors;
  • lifetime allowance excess lump sum;
  • overseas arrangement active membership period;
  • recognised overseas scheme arrangement;
  • relevant overseas individual;
  • standard lifetime allowance;
  • transitional 2013/14 lump sum;
  • winding-up lump sum death benefit.
12 In Schedule 28 (pension rules and pension death benefit rules), in Part 2 (pension death benefit rules), in paragraph 16AA omit sub-paragraph (a).
13
1 Schedule 32 (meaning of expressions relating to benefit crystallisation events) is amended as follows.
2 In the shoulder note, for “Section 216” substitute “Sections 232 and 236”.
3 In the heading omit “- supplementary”.
4 Before paragraph 1 and the italic heading before it insert—
5 In paragraph 1 (meaning of “the relevant pension schemes”)—
a for “For the purposes of the benefit crystallisation events” substitute “In this Schedule”;
b omit the words from “(or in the case of” to the end.
6 Omit the following paragraphs and the italic headings before them—
a paragraph 2A (avoiding double counting of refunded amounts of overseas transfer charge);
b paragraphs 2B, 3 and 4 (BCEs 1, 2 and 4: prevention of overlap);
c paragraph 5 (BCEs 1 and 5: hybrid arrangements);
d paragraph 6 (BCEs 2, 3 and 5: meaning of “RVF”);
7 In paragraph 7 (BCEs 2 and 4: early lifetime annuities) omit sub-paragraphs (4) and (5).
8 Omit the following paragraphs and the italic headings before them—
a paragraph 9 (BCE 2: meaning of “P”);
b paragraph 13 (BCE 3: meaning of “XP”);
c paragraph 14 (BCE 5: meaning of “DP” and “DSLS”);
d paragraph 14ZA (BCEs 5 and 5B: hybrid arrangements);
e paragraph 14ZB (BCE 5A: meaning of “amounts crystallised by BCE 1”);
f paragraph 14A (BCE 5B: meaning of “remaining unused funds”);
g paragraph 14B (BCEs 5C and 5D: meaning of “relevant two-year period”);
h paragraph 14C (BCEs 5C and 5D: meaning of “relevant unused uncrystallised funds”).
9 In paragraph 15 (BCE 6: meaning of “relevant lump sum”), in sub-paragraph (c), for “lifetime allowance excess lump sum” substitute “pension commencement excess lump sum”.
10 Omit the following paragraphs and the italic headings before them—
a paragraph 15A (BCE 6: prevention of overlap);
b paragraph 16 (BCE 7: meaning of “relevant lump sum death benefit”);
c paragraph 17 (BCE 8: prevention of overlap).
14 In Schedule 34 (non-UK schemes: application of certain charges) omit paragraphs 13 to 19 (lifetime allowance charge) and the italic heading before those paragraphs.

Part 2 Taxation of lump sums

Amendments of Part 4 of FA 2004 (pension schemes etc)

15 Part 4 of FA 2004 (pension schemes etc) is amended as follows.
16 In section 164 (authorised member payments), in subsection (2)(c), for the words from “for the purposes of” to the end substitute “as a relevant benefit crystallisation event for the purposes of section 637Q or 637S of ITEPA 2003 (availability of individual’s lump sum allowance and lump sum and death benefit allowance).”
17
1 Section 166 (lump sum rule) is amended as follows.
2 In subsection (1), in the lump sum rule—
a after paragraph (a) insert—
;
b at the end of paragraph (e) insert “, or”;
c omit paragraphs (g) and (h).
3 In subsection (2)—
a omit paragraph (za);
b in paragraph (a), for “any other pension commencement lump sum” substitute “a pension commencement lump sum or a pension commencement excess lump sum”.
18 In section 168 (lump sum death benefit rule), in subsection (1), in the lump sum death benefit rule—
a at the end of paragraph (f) insert “, or”;
b omit paragraph (i) (and the “or” before it).
19 In section 227G (when pension rights are first flexibly accessed) omit subsection (11).
20
1 Section 228ZA (tapered reduction of annual allowance: high-income individual) is amended as follows.
2 In subsection (4) (definition of “adjusted income”), for paragraph (e) substitute—
3 In subsection (5) (definition of “threshold income”), for paragraph (d) substitute—
21 In section 264 (false statements etc), in subsection (1)(a), for “under this Part, or” substitute “under this Part or under Part 9 of ITEPA 2003 (pension income) on pension income to which—
22
1 Section 265 (winding-up to facilitate payment of lump sums) is amended as follows.
2 In subsection (2) omit “or winding-up lump sum death benefits (or both)”.
3 In subsection (4) omit paragraph (b) (and the “and” before it).
23 After section 278 (market value) insert—
24 In section 280 (abbreviations and general index), in the table in subsection (2)—
a at the appropriate places add—
;
b in the entry for “related dependants’ annuity” for “paragraph 3(4A) of Schedule 29” substitute “section 278B(1)”;
c in the entry for “related nominees’ annuity” for “paragraph 3(4B) of Schedule 29” substitute “section 278B(2)”;
d in the entry for “related dependants’ scheme pension” for “paragraph 3(7C) of Schedule 29” substitute “section 278B(3)”.
25 Schedule 29 (authorised lump sums - supplementary) is amended in accordance with paragraphs 26 to 37.
26
1 Paragraphs 1 to 3A (pension commencement lump sums) are amended as follows.
2 In paragraph 1 (pension commencement lump sum)—
a in sub-paragraph (1)—
i in paragraph (b) for the words from “lifetime allowance” to the end substitute “lump sum allowance is available, and all or part or the member’s lump sum and death benefit allowance is available (see paragraph 12A),”;
ii in sub-paragraph (f) for “sub-paragraphs (4) and (4A)” substitute “sub-paragraph (4A)”;
b omit sub-paragraphs (3A), (4) and (6).
3 Omit paragraphs 1A and 1B (which modify the definition of “pension commencement lump sum” in relation to certain lump sums paid before 6 April 2015 and are therefore no longer of practical utility).
4 For paragraph 2 (definition of “the permitted maximum”) substitute—
5 For paragraph 3 (definition of “the applicable amount”) substitute—
6 Before paragraph 3A (anti-avoidance rule to prevent recycling of pension commencement lump sum) insert the following heading—
.
7 In paragraph 3A(5), for paragraphs (a) and (b) substitute “the amount of the lump sum”.
8 After paragraph 3A insert—
9 After paragraph 3B (as inserted by sub-paragraph (8)) insert—
27
1 Paragraph 4 (serious ill-health lump sum) is amended as follows.
2 In sub-paragraph (1)—
a at the end of paragraph (a) insert “and”;
b omit paragraph (b).
3 In sub-paragraph (2) for “in respect of which there has been no previous benefit crystallisation event” substitute “under which the member has not previously become entitled to any pension or lump sum”.
4 Omit sub-paragraph (3).
28
1 Paragraph 4A (uncrystallised funds pension lump sum) is amended as follows.
2 In sub-paragraph (1) omit paragraph (b).
3 Omit sub-paragraph (2).
29
1 Paragraph 5 (short service refund lump sum) is amended as follows.
2 In sub-paragraph (1), for paragraph (c) substitute—
.
30
1 In paragraph 7 (trivial commutation lump sum), in sub-paragraph (1)(c), for “lifetime allowance is available” substitute “lump sum allowance is available (see paragraph 12A)”.
2 In paragraph 8 (trivial commutation lump sum: value of member’s relevant crystallised pension rights on the nominated date), in sub-paragraph (1), for paragraph (b) substitute—
31 In paragraph 10 (winding-up lump sum), in sub-paragraph (1)(d), for “lifetime allowance is available” substitute “lump sum allowance is available (see paragraph 12A)”.
32 Omit paragraph 11 (lifetime allowance excess lump sum) and the italic heading before it.
33 Omit paragraph 11A (transitional 2013/14 lump sum) and the italic heading before it.
34 In the italic heading before paragraph 12 omit “of Part 1”.
35
1 Paragraph 12 (interpretation) is amended as follows.
2 Omit sub-paragraphs (1A) to (4).
3 In sub-paragraph (5), for “4A(2)” substitute “3C(2)”.
36 After paragraph 12 insert—
37
1 In paragraph 13 (defined benefits lump sum death benefit) sub-paragraph (1)(d) is amended as follows.
2 After “pension protection lump sum death benefit,” insert “or”.
3 Omit “or winding-up lump sum death benefit.”

Amendments of Part 9 of ITEPA 2003

38 Part 9 of ITEPA 2003 (pension income) is amended as follows.
39 In section 565 (structure of Part 9), for the paragraph relating to Chapter 15A substitute—
40
1 Section 566 (nature of charge to tax on pension income and relevant definitions) is amended as follows.
2 In subsection (3), for “16” substitute “15A”.
3 In the table in subsection (4)—
a after the entry for section 633 insert—
b in the entry for section 636B, in the first column, for “636B” substitute “637G”.
c in the entry for section 636C—
i in the first column, for “636C” substitute “637N”;
ii in the second column omit “and winding-up lump sum death benefits”.
41 For Chapter 15A substitute—

42 Amendments of the Registered Pension Schemes (Authorised Payments) Regulations 2009

1 The Registered Pension Schemes (Authorised Payments) Regulations 2009 (S.I. 2009/1171) are amended as follows.
2 Omit regulation 3A (which relates to payments made before 6 April 2015 and is therefore no longer of practical utility).
3 In regulation 7 (meaning of “relevant accretion”) omit paragraphs (3) and (3A).
4 In regulation 16 (payments of arrears of pension after death) omit paragraphs (5) and (6).
5 In regulation 17 (pension commencement lump sums based on pension errors) omit paragraphs (4) and (5).
6 In regulation 18 (pension commencement lump sums paid in error: money purchase arrangements) omit paragraphs (4) and (5).
7 In regulation 19 (pension commencement lump sums paid after death) omit paragraphs (2) and (3).
8 In regulation 20 (part refund payments relating to short service), in paragraph (1) for sub-paragraph (b) substitute—
.

Part 3 Non-UK schemes

Amendments of Part 4 of FA 2004

43 Part 4 of FA 2004 (pension schemes etc) is amended as follows.
44 In section 244 (non-UK schemes: application of certain charges), after “under this Part” insert “, and under Part 9 of ITEPA 2003 (pension income),”.
45 For section 244A (overseas transfer charge) substitute—
46
1 Section 244B (exclusion: member and receiving scheme in same country) is amended as follows.
2 In subsection (1)—
a in the words before paragraph (a)—
i after “recognised transfer to a QROPS” insert “or a relieved relevant non-UK scheme transfer”;
ii after “overseas transfer charge” insert “under section 244AC”;
b in paragraph (a), after “the QROPS” insert “to which the transfer is made”;
c in paragraph (b), in sub-paragraph (i), after “recognised transfer” insert “or relieved relevant non-UK scheme transfer”.
3 In subsection (3), in the words before paragraph (a), after “overseas transfer charge” insert “under section 244AC”.
47
1 Section 244C (exclusion: receiving scheme in EEA state or Gibraltar, and member resident in UK or EEA state) is amended as follows.
2 In subsection (2)—
a in the words before paragraph (a)—
i after “recognised transfer” insert “or a relieved relevant non-UK scheme transfer”;
ii after “overseas transfer charge” insert “under section 244AC”.
b in paragraph (b), in sub-paragraph (i), after “recognised transfer” insert “or relieved relevant non-UK scheme transfer”.
3 In subsection (3), in the words before paragraph (a), after “recognised transfer” insert “or relieved relevant non-UK scheme transfer”.
4 In subsection (4), in the words before paragraph (a), after “overseas transfer charge” insert “under section 244AC”.
48 In section 244D (exclusion: receiving scheme is an occupational pension scheme), in the words before paragraph (a), after “overseas transfer charge” insert “under section 244AC”.
49 In section 244E (exclusion: receiving scheme set up by international organisation), in subsection (1), in the words before paragraph (a), after “overseas transfer charge” insert “under section 244AC”.
50 In section 244F (exclusion: receiving scheme is an overseas public service scheme), in subsection (1), in the words before paragraph (a), after “overseas transfer charge” insert “under section 244AC”.
51
1 Section 244G (exclusions: avoidance of double charge, and transitional protections) is amended as follows.
2 In subsection (2), in the words before paragraph (a), after “overseas transfer charge” insert “under section 244AC”.
3 In subsection (3), after “overseas transfer charge” insert “under section 244AC”.
4 After subsection (4) insert—
52 In section 244H (power to provide for further exclusions)—
a for “or an onward transfer,” substitute “a relieved relevant non-UK scheme transfer or an onward transfer”;
b after “overseas transfer charge” insert “under section 244AC”.
53 In section 244I (circumstances in which exclusions do not apply), in subsection (1)—
a for “or an onward transfer,” substitute “a relieved relevant non-UK scheme transfer or an onward transfer”;
b after “overseas transfer charge” insert “under section 244AC”.
54 After section 244I insert—
55
1 Section 244J (persons liable to charge) is amended as follows.
2 After subsection (1) insert—
3 In subsection (4), in the words before paragraph (a), for “transfer” substitute “recognised transfer to a QROPS or an onward transfer”.
56 After section 244J insert—
57
1 Section 244K (amount of charge) is amended as follows.
2 For the heading substitute “Meaning of “transferred value””.
3 For subsection (1) substitute—
4 In subsection (2), in the words after paragraph (b), for “(5)” substitute “(6)”.
5 In subsection (3), in the words after paragraph (b), for “(5)” substitute “(6)”.
6 After subsection (3) insert—
7 In subsection (4), in the words after paragraph (b), for “(5)” substitute “(6)”.
8 Omit subsections (5) and (10).
58 In section 244M (repayments of charge on subsequent excluding events), in subsection (1), in paragraph (a), for “overseas transfer charge” substitute “the overseas transfer charge under section 244AC”.
59
1 Schedule 33 (overseas pension schemes: migrant member relief) is amended as follows.
2 In paragraph 4 (meaning of “relevant migrant member”)—
a in sub-paragraph (1)(d), after “events that are” insert “relevant”;
b after sub-paragraph (3) insert—
3 In paragraph 5 (meaning of “qualifying” overseas pension scheme)—
a in sub-paragraph (2), for “events that are benefit crystallisation” substitute “relevant”;
b for sub-paragraph (2A) substitute—
;
c after sub-paragraph (5) insert—
60
1 Schedule 34 (non-UK schemes: application of certain charges) is amended as follows.
2 In paragraph 1 (member payment charges)—
a in sub-paragraph (3), at the end of paragraph (d) insert “and”;
b in sub-paragraph (3), for paragraphs (da), (db) and (e) substitute—
;
c in sub-paragraph (4), for paragraph (b) substitute—
3 After paragraph 5 insert—
4 Omit paragraphs 13 to 19 (lifetime allowance charge).

61 Amendments of Chapter 4 of Part 9 of ITEPA 2003

1 In Chapter 4 of Part 9 of ITEPA 2003 (foreign pensions), section 574A (“pension”: relevant lump sums) is amended as follows.
2 After subsection (2) insert—
3 In subsection (3), in Step 3—
a in paragraph (a) for “section 636B(3)” substitute “section 637G(2)”;
b in paragraph (b), for “all or part of the member’s lifetime allowance is available” substitute “all of the member’s lump sum allowance is available”.

62 Amendments of the Pension Schemes (Application of UK Provisions to Relevant Non-UK Schemes) Regulations 2006

1 The Pension Schemes (Application of UK Provisions to Relevant Non-UK Schemes) Regulations 2006 (S.I. 2006/207) are amended as follows.
2 In regulation 1(2) (interpretation) omit the definition of “benefit crystallisation event 8”.
3 In regulation 3 (computation of a member’s relevant transfer fund)—
a the existing text becomes paragraph (1);
b in sub-paragraph (a) of that paragraph—
i omit “by virtue of benefit crystallisation event 8”;
ii after “registered” insert “pension”;
c after that paragraph insert—
4 In regulation 3A (computation of a member’s taxable asset transfer fund)—
a in paragraph (1)(a) omit “by virtue of benefit crystallisation event 8”;
b after paragraph (2) insert—
5 In regulation 4ZB (payment and crystallisation valuation), in paragraph (9), for “paragraph 3(7C) of Schedule 29” substitute “section 278B”.
6 In regulation 15 (modification of Schedule 29 (authorised lump sums: definitions etc))—
a after paragraph (1) insert—
;
b omit paragraphs (2) to (10).
7 In regulation 17 (modification of Schedule 34 (non-UK schemes: application of certain charges)), in the inserted paragraph 19A (Revenue and Customs discretion)—
a in sub-paragraph (1)—
i at the end of paragraph (a)(ii) insert “and”;
ii omit paragraph (c) and the “and” before it;
b in sub-paragraph (3)(b), for “to (c)” substitute “and (b)”;
c in sub-paragraph (4)(b), for “by” the first time it occurs substitute “be”.
8 For regulation 18 (modification of section 636A(1B) (taxation of uncrystallised funds pension lump sum paid to member who is 75 or over)) substitute—

Part 4 Transitional protections

63 Amendments of Schedule 29 to FA 2004

1 In Schedule 29 to FA 2004 (registered pension schemes: authorised lump sums: supplementary), paragraph 4A (uncrystallised funds pension lump sum) is amended as follows.
2 In sub-paragraph (1)—
a at the end of paragraph (e) insert “and”;
b omit the “and” at the end of paragraph (f);
c omit paragraph (g).
3 Omit sub-paragraphs (3) to (6).
4 At the end insert—

64 Amendments of Schedule 34 to FA 2004

1 Schedule 34 to FA 2004 (non-UK schemes: application of certain charges) is amended as follows.
2 In the heading, at the end insert “and protections etc”.
3 After paragraph 12 (application of annual allowance provisions) insert—

Amendments of Part 2 of Schedule 36 to FA 2004

65 Part 2 of Schedule 36 to FA 2004 (transitional provision and saving: pre-commencement rights: lifetime allowance charge) is amended as follows.
66 In the heading, for “lifetime allowance charge” substitute “enhancement of allowances etc”.
67 Before paragraph 7 and the italic heading before it insert—
68 For paragraph 7 (primary protection) substitute—
69
1 Paragraph 11 (primary protection: pension debit on or after 6th April 2006) is amended as follows.
2 In sub-paragraph (1)(a), for “makes provision for the operation of a lifetime allowance enhancement factor” substitute “applies”.
3 In sub-paragraphs (2) and (3), for “paragraph 7(3)” substitute “paragraph 7(5)”.
4 In sub-paragraph (4), for “benefit crystallisation event” substitute “relevant benefit crystallisation event”.
5 After that sub-paragraph insert—
70
1 Paragraph 11A (primary protection: pension debit on or after 6th April 2006: lump sum death benefits) is amended as follows.
2 In sub-paragraph (1)(a), for “makes provision for the operation of a lifetime allowance enhancement factor” substitute “applies”.
3 In paragraphs (a) and (b) of sub-paragraph (4), for “benefit crystallisation event” substitute “relevant benefit crystallisation event”.
4 After that sub-paragraph insert—
71
1 Paragraph 12 (enhanced protection) is amended as follows.
2 For sub-paragraph (3) substitute—
72 In paragraph 13 (enhanced protection: relevant benefit accrual), in sub-paragraph (b), for “a benefit crystallisation event or” substitute “the individual becomes entitled to any pension or lump sum or a”.
73
1 Paragraph 15 (enhanced protection: relevant benefit accrual: interpretation) is amended as follows.
2 In sub-paragraph (2), in the words before paragraph (a)—
a after “relevant event is a” insert “relevant”;
b omit “which is not a benefit crystallisation event”.
3 After sub-paragraph (2) insert—
74 In paragraph 16 (post-commencement earnings limit), in subsection (3), for the words from “7.5%” to the end substitute “£135,000.”
75 For paragraph 18 (pre-commencement pension credits) substitute—
76
1 Paragraph 19 (individuals permitted to take pension before normal minimum pension age) is amended as follows.
2 In sub-paragraph (1), in the words before paragraph (a), for “benefit crystallisation event” substitute “relevant benefit crystallisation event”.
3 After that paragraph insert—
4 For sub-paragraph (2) substitute—
5 In sub-paragraphs (3) and (4), for “benefit crystallisation event” substitute “relevant benefit crystallisation event”.
6 Omit sub-paragraphs (5) and (6).
7 At the end insert—
77
1 Paragraph 20 (pre-commencement pensions) is amended as follows.
2 In sub-paragraph (1)—
a the words from “has an actual (rather than a prospective) right” to the end become paragraph (a);
b after that paragraph insert
3 After sub-paragraph (1) insert—
4 In sub-paragraph (2)—
a in the words before paragraph (a)—
i for “Section 219 (availability of individual’s lifetime allowance)” substitute “Section 637S of ITEPA 2003 (availability of individual’s lump sum and death benefit allowance)”;
ii for “benefit crystallisation event” substitute “relevant benefit crystallisation event”;
b in paragraph (a), for “benefit crystallisation event” substitute “relevant benefit crystallisation event within the meaning of that section”;
c in paragraph (b)—
i for “amount crystallised was” substitute “amount of the lump sum or lump sum death benefit to which the relevant benefit crystallisation event relates was 25% of”;
ii for “benefit crystallisation event” substitute “relevant benefit crystallisation event”.
78 After paragraph 20 insert—

Amendments of Part 3 of Schedule 36 to FA 2004

79 Part 3 of Schedule 36 to FA 2004 (transitional provision and saving: pre-commencement benefit rights) is amended as follows.
80 Omit paragraph 23A (pre-commencement benefit rights: lump sums before normal minimum pension age) and the italic heading before it.
81
1 In paragraph 24 (pre-commencement benefit rights: lump sum rights exceeding £375,000: primary and enhanced protection), sub-paragraph (1) is amended as follows.
2 In paragraph (a), after “Schedule 29” insert “and paragraph 12 of this Schedule”.
3 For paragraph (b) substitute—
.
82 For paragraph 27 (pre-commencement benefit rights: enhanced protection: permitted maximum) substitute—
83
1 Paragraph 28 (pre-commencement benefit rights: no enhanced protection: permitted maximum) is amended as follows.
2 In sub-paragraph (1) omit “paragraph 2 of”.
3 In sub-paragraph (2), after “paragraph 2” insert “of Schedule 29”.
4 For sub-paragraph (3) substitute—
84 For paragraph 29 (pre-commencement benefit rights: enhanced protection: applicable amount) substitute—
85 After paragraph 29 (substituted by paragraph 84) insert—
86 Omit paragraph 30 (pre-commencement benefit rights: exemption for pension commencement lump sum exceeding permitted maximum from being scheme chargeable).
87 For paragraph 34 (pre-commencement benefit rights: application of Schedule 29 to FA 2004 where paragraph 31 applies) substitute—
88 Omit paragraph 35 (pre-commencement benefit rights: winding-up lump sums paid by former approved superannuation funds) and the italic heading before it.

89 Amendment of Part 4 of Schedule 36 to FA 2004

In Part 4 of Schedule 36 to FA 2004 (transitional provisions and savings: other provisions), in paragraph 51 (individuals with pre-commencement entitlement to corresponding relief), in sub-paragraph (4), for “events that are benefit crystallisation events in relation to the individual” substitute “an event that is the individual becoming entitled to a benefit under a pension scheme”.

90 Amendments of Schedule 18 to FA 2011

1 In Schedule 18 to FA 2011 (lifetime allowance charge), in Part 2 (commencement and transitional provision), paragraph 14 (fixed protection) is amended as follows.
2 In sub-paragraph (1)(b), for “make provision for a lifetime allowance enhancement factor” substitute “apply on that date”.
3 In sub-paragraph (1A)(b), for “make provision for a lifetime allowance enhancement factor” substitute “apply on that date”.
4 For sub-paragraph (3) substitute—

91 Amendments of Schedule 22 to FA 2013

1 In Schedule 22 to FA 2013 (transitional provision relating to reduction in standard lifetime allowance etc), in Part 1 (“fixed protection 2014”), paragraph 1 is amended as follows.
2 In sub-paragraph (1)(b), for “make provision for a lifetime allowance enhancement factor” substitute “apply on that date”.
3 For sub-paragraph (2) substitute—

92 Amendments of Schedule 6 to FA 2014

1 In Schedule 6 to FA 2014 (transitional provision relating to new standard lifetime allowance for the tax year 2014-15 etc), in Part 1 (“individual protection 2014”), paragraph 1 (the protection) is amended as follows.
2 In sub-paragraph (1)(c), for “make provision for a lifetime allowance enhancement factor” substitute “apply on that date”.
3 For sub-paragraph (2) substitute—

93 Amendments of Schedule 4 to FA 2016

1 Schedule 4 to FA 2016 (pensions: lifetime allowance: transitional provision) is amended as follows is amended as follows.
2 In the heading, for “lifetime allowance” substitute “lump sum allowance and lump sum and death benefit allowance”.
3 In Part 1 (“fixed protection 2016”)—
a in paragraph 1 (the protection), for sub-paragraph (2) substitute—
;
b in paragraph 2 (the initial conditions), in paragraph (b), for “make provision for a lifetime allowance enhancement factor” substitute “apply on 6 April 2016”.
4 In Part 2 (“individual protection 2016”), in paragraph 9 (the protection)—
a in sub-paragraph (1)(c), for “make provision for a lifetime allowance enhancement factor” substitute “apply on 6 April 2016”;
b for sub-paragraph (2) substitute—
5 In Part 3 (reference numbers etc), in paragraph 14 (issuing of reference numbers for fixed or individual protection 2016), in sub-paragraph (3)(b), at the end insert “but before 6 April 2025”.

94 Amendments of the Registered Pension Schemes (Enhanced Lifetime Allowance) Regulations 2006

1 The Registered Pension Schemes (Enhanced Lifetime Allowance) Regulations 2006 (S.I. 2006/131) are amended as follows.
2 In the title, for “Lifetime Allowance” substitute “Allowances”.
3 In regulation 1 (citation and commencement), for “Lifetime Allowance” substitute “Allowances”.
4 In regulation 2(1) (interpretation)—
a for the entry for “relevant lump sum death benefit” substitute—
;
b in the appropriate places insert—
.
5 In regulation 3 (reliance on paragraph 7 of Schedule 36 (lifetime allowance enhancement: “primary protection”)), in the heading, for “lifetime allowance enhancement” substitute “enhancement of allowances”.
6 In regulation 3A (reliance on paragraph 11A of Schedule 36 (lifetime allowance enhancement: “primary protection”: taking account of death benefit))—
a in the heading, for “lifetime allowance enhancement” substitute “enhancement of allowances”;
b in paragraph (6), for “section 217(2)” substitute “section 579C of ITEPA 2003”.
7 In regulation 4 (reliance on paragraph 12 of Schedule 36 (lifetime allowances: “enhanced protection”)), in the heading, for “lifetime allowances” substitute “enhancement of allowances”.
8 In regulation 4A (reliance on paragraph 15A of Schedule 36 (lifetime allowances: “enhanced protection”: taking account of death benefit))—
a in the heading, for “lifetime allowances” substitute “enhancement of allowances”;
b in paragraph (6), for “section 217(2)” substitute “section 579C of ITEPA 2003”.
9 In regulation 5 (reliance on paragraph 18 of Schedule 36 (lifetime allowance enhancement: pre-commencement pension credits)—
a in the heading, for “lifetime allowance enhancement” substitute “enhancement of allowances”;
b in paragraph (1)—
i for “benefit crystallisation event” substitute “relevant benefit crystallisation event”;
ii for “paragraph 18(1)” substitute “paragraph 18(1)(a)”.
10 In regulation 6 (reliance on section 220 (lifetime allowance enhancement: registration of pension credits))—
a in the heading—
i for “section 220” substitute “paragraph 20A of Schedule 36”;
ii for “lifetime allowance enhancement” substitute “enhancement of allowances”;
b in paragraph (1), for “section 220(1)” substitute “paragraph 20A(1) of Schedule 36”;
c in paragraph (2), for “section 220” substitute “paragraph 20A of Schedule 36”;
d in paragraph (3), for “section 220” substitute “paragraph 20A of Schedule 36”;
e after paragraph (3) insert—
;
f in paragraph (4)—
i in the words before the first rule, for “closing date” substitute “relevant date”;
ii in the words after the second rule, for “closing date” substitute “relevant date”;
g in paragraph (6), in the words before sub-paragraph (a), for “section 220” substitute “paragraph 20A of Schedule 36”;
h in paragraph (8), in the words before sub-paragraph (a), for “section 220” substitute “paragraph 20A of Schedule 36”.
11 In regulation 7 (reliance on section 221 (lifetime allowance enhancement: relevant overseas individuals))—
a in the heading—
i for “section 221” substitute “paragraph 20B of Schedule 36”;
ii for “lifetime allowance enhancement” substitute “enhancement of allowances”;
b in paragraph (2), for “section 221” substitute “paragraph 20B of Schedule 36”;
c in paragraph (3), for “section 221” substitute “paragraph 20B of Schedule 36”;
d after paragraph (3) insert—
;
e in paragraph (4)—
i in the words before the first rule, for “closing date” substitute “relevant date”;
ii in the words after the second rule, for “closing date” substitute “relevant date”;
f in paragraph (6), in the words before sub-paragraph (a), for “section 221” substitute “paragraph 20B of Schedule 36”;
g in paragraph (8), in the words before sub-paragraph (a), for “section 221” substitute “paragraph 20B of Schedule 36”.
12 In regulation 8 (reliance on section 224 (lifetime allowance enhancement: transfer from recognised overseas pension scheme))—
a in the heading—
i for “section 224” substitute “paragraph 20E of Schedule 36”;
ii for “lifetime allowance enhancement” substitute “enhancement of allowances”;
b in paragraph (1), for “section 224(1)” substitute “paragraph 20E(1)”;
c in paragraph (2), for “section 224” substitute “paragraph 20E of Schedule 36”;
d in paragraph (3), for “section 224” substitute “paragraph 20E of Schedule 36”;
e after paragraph (3) insert—
;
f in paragraph (4)—
i in the words before the first rule, for “closing date” substitute “relevant date”;
ii in the words after the second rule, for “closing date” substitute “relevant date”;
g in paragraph (6), in the words before sub-paragraph (a), for “section 224” substitute “paragraph 20E of Schedule 36”;
h in paragraph (8), in the words before sub-paragraph (a), for “section 224” substitute “paragraph 20E of Schedule 36”.
13 In regulation 15 (certificates: general), in paragraph (3), for “benefit crystallisation event” substitute “relevant benefit crystallisation event”.

95 Amendments of the Taxation of Pension Schemes (Transitional Provisions) Order 2006

1 The Taxation of Pension Schemes (Transitional Provisions) Order 2006 (S.I. 2006/572) is amended as follows.
2 In article 25A (conditions to be met by stand-alone lump sums), in paragraph (3), for “benefit crystallisation event” substitute “relevant benefit crystallisation event”.
3 In article 25B (circumstances in which stand-alone lump sums are paid), in paragraph (2), for “paragraph 2 of Schedule 29” substitute “Chapter 15A of Part 9 of ITEPA 2003”.
4 In article 25C (payment of stand-alone lump sums: tax consequences), for paragraphs (2) and (3A) substitute—
5 After article 25C insert—
6 In article 25D (stand-alone lump sums: further provisions)—
a in paragraph (2)—
i for “VULSR — APCLS” substitute “A — B”;
ii omit the words from “, in the modified sub-paragraph (6)” to the end;
b in paragraph (3), for “in the modified sub-paragraph (6) of paragraph 2 of Schedule 29, the term “APCLS”” substitute “the term “B””.

96 Amendments of the Registered Pension Schemes (Lifetime Allowance Transitional Protection) Regulations 2011

1 The Registered Pension Schemes (Lifetime Allowance Transitional Protection) Regulations 2011 (S.I. 2011/1752) are amended as follows.
2 In the title, for “Lifetime Allowance” substitute “Enhanced Allowances”.
3 In regulation 1 (citation and commencement), for “Lifetime Allowance” substitute “Enhanced Allowances”.
4 In regulation 4 (the paragraph 14 notice), in paragraph (1)(c), for “make provision for a lifetime allowance enhancement factor” substitute “apply”.
5 In regulation 13 (preservation of documents), in paragraph (1), for “benefit crystallisation event” substitute “relevant benefit crystallisation event within the meaning of section 637S of ITEPA 2003”.

97 Amendments of the Registered Pension Schemes and Relieved Non-UK Pension Schemes (Lifetime Allowance Transitional Protection) (Notification) Regulations 2013

1 The Registered Pension Schemes and Relieved Non-UK Pension Schemes (Lifetime Allowance Transitional Protection) (Notification) Regulations 2013 (S.I. 2013/1741) are amended as follows.
2 In the title, for “Lifetime Allowance” substitute “Enhanced Allowances”.
3 In regulation 1 (citation and commencement), for “Lifetime Allowance” substitute “Enhanced Allowances”.
4 In regulation 4 (the paragraph 1 notice), in paragraph (1)—
a in sub-paragraph (c), for “make provision for a lifetime allowance enhancement factor” substitute “apply”;
b in sub-paragraph (e), for “(transitional provision relating to new standard lifetime allowance for the tax year 2012-13)” substitute “(fixed protection)”.
5 In regulation 13 (preservation of documents), in paragraph (1), for “benefit crystallisation event” substitute “relevant benefit crystallisation event within the meaning of section 637S of ITEPA 2003”.

98 Amendments of the Registered Pension Schemes and Relieved Non-UK Pension Schemes (Lifetime Allowance Transitional Protection) (Individual Protection 2014 Notification) Regulations 2014

1 The Registered Pension Schemes and Relieved Non-UK Pension Schemes (Lifetime Allowance Transitional Protection) (Individual Protection 2014 Notification) Regulations 2014 (S.I. 2014/1842) are amended as follows.
2 In the title, for “Lifetime Allowance” substitute “Enhanced Allowances”.
3 In regulation 1 (citation and commencement), for “Lifetime Allowance” substitute “Enhanced Allowances”.
4 In regulation 4 (the paragraph 1 notice), in paragraph (1), in sub-paragraph (f), for “make provision for a lifetime allowance enhancement factor” substitute “apply”.
5 In regulation 13 (preservation of documents), in paragraph (2), for “benefit crystallisation event” substitute “relevant benefit crystallisation event within the meaning of section 637S of ITEPA 2003”.

Part 5 Provision of information

Amendments of Part 4 of FA 2004

99 Part 4 of FA 2004 (pension schemes etc) is amended as follows.
100
1 Section 256 (enhanced lifetime allowance regulations) is amended as follows.
2 In the heading omit “lifetime”.
3 In subsection (1)—
a omit paragraphs (a) to (c);
b in paragraph (d), for “lifetime allowance enhancement” substitute “enhancement of allowances”;
c in paragraph (e)—
i omit “lifetime allowance”;
ii omit the “and” at the end;
d in paragraph (f)—
i for “paragraph 18(6)” substitute “paragraph 18(1)(b)”;
ii for “lifetime allowance enhancement” substitute “enhancement of allowances”;
e after paragraph (f) insert—
4 In subsection (2) omit “lifetime”.
5 In subsection (3)—
a in the words before paragraph (a) omit “lifetime”;
b omit paragraph (a).
6 In subsection (4), in the words before paragraph (a) omit “lifetime”.
101
1 Section 261 (enhanced lifetime allowance regulations: documents and information) is amended as follows.
2 In the heading omit “lifetime”.
3 In subsection (1)(a) omit “lifetime”.
4 In subsection (2)—
a in paragraph (a), for “lifetime allowance” substitute “lump sum allowance or lump sum and death benefit allowance”;
b in paragraph (b), after “pension commencement lump sums” insert “or the uncrystallised funds pension lump sums”.
5 In subsection (4), in the words before paragraph (a)—
a for “lifetime allowance” substitute “lump sum and death benefit allowance”;
b for the words “whichever is the higher of” to the end of paragraph (b) substitute “the actual amount of the individual’s lump sum and death benefit allowance at that time.”
6 In subsection (5)(a)—
a for “a benefit crystallisation event” substitute “a relevant benefit crystallisation event within the meaning of section 637S of ITEPA 2003 (availability of individual’s lump sum and death benefit allowance)”;
b for “the benefit crystallisation event” substitute “the relevant benefit crystallisation event”.
7 In subsection (6), in paragraphs (a) and (b), after “pension commencement lump sums” insert “or the uncrystallised funds pension lump sums”.
102
1 Section 262 (enhanced lifetime allowance regulations: failures to comply) is amended as follows.
2 In the heading omit “lifetime”.
3 In paragraphs (a), (b) and (c) omit “lifetime”.
103
1 Section 263 (lifetime allowance enhanced protection: benefit accrual) is amended as follows.
2 In the heading omit “Lifetime allowance”.
3 In subsection (1)(a), for “lifetime allowance charge” substitute “enhancement of allowances”.

Amendments of the Registered Pension Schemes (Provision of Information) Regulations 2006

104 The Registered Pension Schemes (Provision of Information) Regulations 2006 (S.I. 2006/567) are amended as follows.
105 In regulation 2 (interpretation), in paragraph (1)—
a at the appropriate places insert—
b in the definition of “relevant lump sum death benefit”, for the words from “means” to the end substitute “has the meaning given by section 637S(2)(c) of ITEPA 2003 (availability of individual’s lump sum and death benefit allowance)”.
106
1 In regulation 3 (provision of information by scheme administrator to the Commissioners for His Majesty’s Revenue and Customs), in paragraph (1), the Table is amended as follows.
2 Omit the entries for the following reportable events—
a payments exceeding 50% of standard lifetime allowance;
b benefit crystallisation events and non-standard lifetime allowances;
c pension commencement lump sum;
d pension commencement lump sum: primary and enhanced protection provisions of Schedule 36;
e stand-alone lump sum.
3 At the end insert—
107
1 Regulation 7 (percentage of standard lifetime allowance expended on the happening of a benefit crystallisation event) is amended as follows.
2 For the heading substitute “Relevant benefit crystallisation events: amount of member’s allowances expended”.
3 For paragraphs (1) and (2) substitute—
4 In paragraph (3)(a) omit “, (2A), (2B)”.
5 For paragraph (4) substitute—
6 After paragraph (4) insert—
108
1 Regulation 8 (death: provision of information by scheme administrator to personal representatives) is amended as follows.
2 In paragraph (1) omit “, (2A), (2B)”.
3 In paragraph (2)—
a for “percentage of standard lifetime allowance” substitute “amount of the member’s lump sum and death benefit allowance”;
b for “relevant lump sum death benefit” substitute “defined benefits lump sum death benefit or an uncrystallised funds lump sum death benefit”.
4 Omit paragraphs (2A) and (2B).
5 In paragraph (3)—
a in the words before sub-paragraph (a), for “percentage of standard lifetime allowance” substitute “amount of the member’s lump sum and death benefit allowance”;
b in sub-paragraph (a), in the words before paragraph (i), for “benefit crystallisation event” substitute “relevant benefit crystallisation event”;
c in sub-paragraph (b), in the words before paragraph (i), for “benefit crystallisation event” substitute “relevant benefit crystallisation event”;
d in the words after sub-paragraph (b)—
i for “percentage” substitute “amount”;
ii for “relevant lump sum death benefit” substitute “defined benefits lump sum death benefit or any uncrystallised funds lump sum death benefit”;
iii omit the words from “and any amount” to the end.
109
1 Regulation 9 (death: provision of information by insurance company to personal representatives) is amended as follows.
2 In paragraph (2)—
a in the words before sub-paragraph (a), for “percentage of standard lifetime allowance” substitute “amount of the member’s lump sum and death benefit allowance”;
b in sub-paragraph (a), in the words before paragraph (i), for “benefit crystallisation event” substitute “relevant benefit crystallisation event”;
c in sub-paragraph (b), in the words before paragraph (i), for “benefit crystallisation event” substitute “relevant benefit crystallisation event”.
110
1 Regulation 10 (death: provision of information by personal representatives to the Commissioners for His Majesty’s Revenue and Customs) is amended as follows.
2 In paragraph (1), in sub-paragraph (b)—
a omit “, or any benefit crystallisation event 5C or 5D,”;
b for “a lifetime allowance charge” substitute “the member’s lump sum and death benefit allowance being exceeded”.
3 Omit paragraphs (1A) and (1B).
4 In paragraph (2)—
a after paragraph (a) insert—
;
b in paragraph (b), after “name” insert “, date of birth, date of death and national insurance number”;
c after paragraph (b) insert—
;
d in sub-paragraph (d), for “the chargeable amount in respect of which a lifetime allowance charge is payable” substitute “the amount by which the member’s lump sum and death benefit allowance is exceeded”.
5 Omit paragraphs (2A) and (2B).
6 In paragraphs (3) and (5) omit “, (1A) or (1B)”.
111
1 Regulation 11 (information provided by member to scheme administrator: protections) is amended as follows.
2 In the heading, for “enhanced lifetime allowance” substitute “enhanced allowances”.
3 In paragraph (1)—
a in the words before paragraph (a), for “the member” substitute “a member”;
b in paragraph (a) omit “lifetime”;
c for the words after paragraph (d) substitute “the member must give to the scheme administrator the reference number issued by or on behalf of the Commissioners under any of the provisions mentioned in paragraph (1A) in respect of that entitlement.”
4 After paragraph (1) insert—
5 In paragraph (2)(a), for “Lifetime Allowance” substitute “Enhanced Allowances”.
112 Omit regulation 11B (information provided by members to scheme administrators: pension commencement lump sums).
113 In regulation 11BA (information provided by members to scheme administrators: recognised transfers), in paragraph (2), after paragraph (ac) insert—
114 In regulation 11BB (information provided by members to scheme administrators: overseas transfers), in paragraph (1)(b)—
a in paragraph (i), for “the” substitute “an”;
b in paragraph (ii)—
i for “required” substitute “excluded from the overseas transfer charge under section 244AC”;
ii omit the words from “to be” to the end.
115 Omit regulation 12 (information about scheme administrator’s liability for a lifetime allowance charge).
116
1 Regulation 12A (provision of information about liability for overseas transfer charge) is amended as follows.
2 In the heading, at the end insert “etc”.
3 In paragraph (1)—
a in the words before sub-paragraph (a), for “the overseas transfer charge” substitute “an overseas transfer charge”;
b for sub-paragraph (b) substitute—
.
4 In paragraph (2)—
a in the words before sub-paragraph (a), after “the overseas transfer charge” insert “under section 244AC”;
b in sub-paragraph (b), at the end insert “under section 244AC”;
c after sub-paragraph (b) insert—
.
5 In paragraph (3), in the words before sub-paragraph (a), for “overseas transfer charge” substitute “an overseas transfer charge under section 244AC”.
117
1 Regulation 14 (information provided to members by scheme administrators about benefit crystallisation events) is amended as follows.
2 In the heading, for “benefit crystallisation events” substitute “relevant benefit crystallisation events”.
3 In paragraph (1)(b), for “benefit crystallisation event” substitute “relevant benefit crystallisation event”.
4 In paragraph (2)(c) omit “(2A) or (2B)”.
5 In paragraph (3)—
a in the words before sub-paragraph (a), for “percentage of standard lifetime allowance” substitute “amount of the member’s lump sum allowance, and the amount of the member’s lump sum and death benefit allowance,”;
b in sub-paragraph (a), for “benefit crystallisation events” substitute “relevant benefit crystallisation events”;
c in sub-paragraph (b), in the words before paragraph (i), for “benefit crystallisation event” substitute “relevant benefit crystallisation event”.
118 In regulation 14ZCA (further information provided by scheme administrators on recognised transfers to overseas schemes), in paragraph (2)—
a in sub-paragraph (a), for “the overseas transfer charge” substitute “an overseas transfer charge”;
b for sub-paragraph (b) substitute—
119
1 Regulation 15 (information between scheme administrators) is amended as follows.
2 In paragraph (2)—
a in the words before paragraph (a), for “total percentage of the standard lifetime allowance” substitute “total amount of the member’s lump sum allowance, and the total amount of the member’s lump sum and death benefit allowance,”;
b in sub-paragraph (a), for “benefit crystallisation events” substitute “relevant benefit crystallisation events”;
c in sub-paragraph (b), in the words before paragraph (i), for “benefit crystallisation event” substitute “relevant benefit crystallisation event”.
120
1 Regulation 16 (pensions and annuities in payment: information provided to and by insurance companies) is amended as follows.
2 In paragraph (2), for “total percentage of standard lifetime allowance” substitute “total amount of the member’s lump sum allowance, and the total amount of the member’s lump sum and death benefit allowance,”.
3 In paragraph (3), for “percentage of the standard lifetime allowance” substitute “total amount of the member’s lump sum allowance, and the total amount of the member’s lump sum and death benefit allowance,”.
4 In paragraph (4)(a), for “benefit crystallisation event” substitute “relevant benefit crystallisation event”.
121
1 Regulation 17 (payments to insurance companies from drawdown pension funds) is amended as follows.
2 In paragraph (2), for “percentage of standard lifetime allowance” substitute “amount of the member’s lump sum allowance, and the amount of the member’s lump sum and death benefit allowance,”.
3 In paragraph (3)—
a for “percentage of the standard lifetime allowance” substitute “amount of the member’s lump sum allowance, and the amount of the member’s lump sum and death benefit allowance,”;
b for “percentage expended” substitute “amount expended”.
4 In paragraph (5)—
a in sub-paragraph (a)—
i in the words before paragraph (i), for “percentages of standard lifetime allowance” substitute “amounts of the member’s lump sum allowance, and the sum of the amounts of the member’s lump sum and death benefit allowance,”;
ii in paragraph (i), for “benefit crystallisation events” substitute “relevant benefit crystallisation events”;
iii in paragraph (ii), for “benefit crystallisation event” substitute “relevant benefit crystallisation event”;
b in sub-paragraph (b), in the words before paragraph (i), for “percentages of standard lifetime allowance” substitute “amounts of the member’s lump sum allowance, and the sum of the amounts of the member’s lump sum and death benefit allowance,”.
5 In paragraph (7)—
a in sub-paragraph (a)—
i in the words before paragraph (i), for “percentages of standard lifetime allowance” substitute “amounts of the member’s lump sum allowance, and the sum of the amounts of the member’s lump sum and death benefit allowance,”;
ii in paragraph (i), for “benefit crystallisation events” substitute “relevant benefit crystallisation events”;
iii in paragraph (ii), for “benefit crystallisation events” substitute “relevant benefit crystallisation events”;
b in sub-paragraph (b), in the words before paragraph (i), for “percentages of standard lifetime allowance” substitute “amounts of the member’s lump sum allowance, and the sum of the amounts of the member’s lump sum and death benefit allowance,”.
122 Omit regulations 19 (lump sums to which paragraph 1B of Schedule 29 applies) and 20 (lump sums to which paragraph 1B of Schedule 29 fails to apply).

123 Amendments of the Registered Pension Schemes and Overseas Pension Schemes (Electronic Communication of Returns and Information) Regulations 2006

1 The Registered Pension Schemes and Overseas Pension Schemes (Electronic Communication of Returns and Information) Regulations 2006 (S.I. 2006/570) are amended as follows.
2 In regulation 2 (interpretation), in paragraph (2), for the entry for “the ELA regulations” substitute—
3 In Schedule 2 (information which may be supplied either to or by HM Revenue & Customs by an approved method of electronic communications)—
a in the entry relating to an application under section 267 or 268 of FA 2004 omit paragraph (a) (which relates to an application under section 267 of that Act);
b in the entry relating to a notification by an individual under regulation 3, 4, 5, 6, 7 or 8 of the Pension Schemes (Enhanced Lifetime Allowance) Regulations 2006 (S.I. 2006/131) (“the 2006 regulations”), for “the ELA regulations” substitute “the EA regulations”;
c in the entry relating to a requirement by an individual under regulation 12 of the 2006 regulations, for “the ELA regulations” substitute “the EA regulations”;
d in the entry relating to a requirement by an individual under regulation 14 of the 2006 regulations, for “the ELA regulations” substitute “the EA regulations”;
e in the entry relating to a requirement by an individual under regulation 16 of the 2006 regulations, for “the ELA regulations” substitute “the EA regulations”;
f in the entry relating to a notice given by an individual under regulation 17 of the 2006 regulations, for “the ELA regulations” substitute “the EA regulations”;
g in the entry relating to a notice given by an individual under regulation 18 of the 2006 regulations, for “the ELA regulations” substitute “the EA regulations”;
h in the entry relating to a notice by His Majesty’s Revenue and Customs under regulation 24 of the 2006 regulations, for “the ELA regulations” substitute “the EA regulations”;
i in the entry relating to a certificate by His Majesty’s Revenue and Customs under the 2006 regulations, for “the ELA regulations” substitute “the EA regulations”;
j in the final entry, relating to a notice of appeal against the imposition of a penalty under certain provisions—
i in paragraph (e) omit “lifetime”;
ii in paragraph (f) omit “lifetime”;
iii in paragraph (g) omit “lifetime allowance”.

Part 6 Commencement and transitional provision etc

124 Commencement

The amendments made by section 14 and this Schedule have effect for the tax year 2024-25 and subsequent tax years.

125 Availability of individual’s lump sum allowance

1 This paragraph applies where—
a one or more benefit crystallisation events within the meaning of Part 4 of FA 2004 occurred in relation to an individual before 6 April 2024, F7...
b a relevant benefit crystallisation event within the meaning of section 637Q of ITEPA 2003 (availability of individual’s lump sum allowance) occurs in relation to the individual on or after that date, and
c at the time the relevant benefit crystallisation occurs, the individual—
i is not an individual to whom paragraph 12 of Schedule 36 to FA 2004 applies (enhanced protection), or
ii is such an individual and is not within paragraph 24(1) of Schedule 36 to FA 2004 (persons with lump sum protection).
F42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3 The amount of the individual’s lump sum allowance that is available on the occurrence of the relevant benefit crystallisation event is—
a the amount of that allowance that is available in accordance with section 637Q of ITEPA 2003 on the occurrence of that event, less
b an amount equal to 25% of the individual’s lifetime allowance previously-used amount;
or, if that produces a negative result, nil.
3A Where—
a the individual is an individual to whom paragraph 7 of Schedule 36 to FA 2004 applies (primary protection),
b the individual is not within paragraph 24(1) of Schedule 36 to FA 2004 (persons with lump sum protection), and
c 25% of the individual’s lifetime allowance previously-used amount is greater than £375,000,
sub-paragraph (3) has effect as if the amount determined under paragraph (b) of that sub-paragraph were £375,000.
4 But sub-paragraph (3) does not apply if, on the occurrence of the relevant benefit crystallisation event, a transitional tax-free amount certificate is in force in relation to the individual.
5 In such a case, the amount of the individual’s lump sum allowance that is available on the occurrence of the relevant benefit crystallisation event is—
a the amount of that allowance that is available in accordance with section 637Q of ITEPA 2003 on the occurrence of that event, less
b the individual’s lump sum transitional tax-free amount;
or, if that produces a negative result, nil.
6 For provision about the meaning of expressions used in this paragraph, see paragraph 129.

126 Availability of individual’s lump sum and death benefit allowance

1 This paragraph applies where—
a one or more benefit crystallisation events within the meaning of Part 4 of FA 2004 occurred in relation to an individual before 6 April 2024, F11...
b a relevant benefit crystallisation event within the meaning of section 637S of ITEPA 2003 (availability of individual’s lump sum and death benefit allowance) occurs in relation to the individual on or after that date. , and
c at the time the relevant benefit crystallisation occurs, the individual is not an individual to whom paragraph 12 of Schedule 36 to FA 2004 applies (enhanced protection).
2 Where the individual’s lifetime allowance previously-used amount is equal to or greater than the individual’s lifetime allowance, none of the individual’s lump sum and death benefit allowance is available on the occurrence of the relevant benefit crystallisation event.
3 Otherwise, the amount of the individual’s lump sum and death benefit allowance that is available on the occurrence of the relevant benefit crystallisation event is—
a the amount of that allowance that is available in accordance with section 637S of ITEPA 2003 on the occurrence of that event, less
b an amount equal to the appropriate percentage of the individual’s lifetime allowance previously-used amount;
or, if that produces a negative result, nil.
3A Where—
a the individual is an individual to whom paragraph 7 of Schedule 36 to FA 2004 applies (primary protection),
b the individual is not within paragraph 24(1) of Schedule 36 to FA 2004 (persons with lump sum protection),
c the appropriate percentage is 25%, and
d 25% of the individual’s lifetime allowance previously-used amount is greater than £375,000,
sub-paragraph (3) has effect as if the amount determined under paragraph (b) of that sub-paragraph were £375,000.
4 In sub-paragraphs (3) and (3A) “the appropriate percentage” means—
a 100% in a case in which—
i the individual becomes entitled to a serious ill-health lump sum before 6 April 2024 and is under the age of 75 at the time of the payment, or
ii the individual dies before 6 April 2024 under the age of 75 and the conditions in sub-paragraph (4A) are met;
b 25% in any other case.
4A The conditions mentioned in sub-paragraph (4)(a)(ii) are—
a that before 6 April 2024 a person is paid a defined benefits lump sum death benefit, or an uncrystallised funds lump sum death benefit, in respect of the individual,
b that the lump sum is paid before the end of the period of two years beginning with the day on which the scheme administrator of the scheme first knew of the individual’s death or (if earlier) the day on which the scheme administrator could first reasonably have been expected to have known of it, and
c that the person to whom the lump sum is paid is not a non-qualifying person.
5 But sub-paragraphs (2) to (4A) do not apply if, at the relevant time, a transitional tax-free amount certificate is in force in relation to the individual.
6 In such a case, the amount of the individual’s lump sum and death benefit allowance that is available on the occurrence of the relevant benefit crystallisation event is—
a the amount of that allowance that is available in accordance with section 637S of ITEPA 2003 on the occurrence of that event, less
b the individual’s lump sum and death benefit transitional tax-free amount;
or, if that produces a negative result, nil.
6A In sub-paragraph (5) “the relevant time” means—
a if the relevant benefit crystallisation event is the individual becoming entitled to a relevant lump sum (within the meaning of section 637S of ITEPA 2003), the time at which the individual becomes so entitled;
b if the relevant benefit crystallisation event is a person being paid a relevant lump sum death benefit (within the meaning of section 637S of ITEPA 2003), the 31 October next following the end of the tax year in which the relevant lump sum death benefit is paid.
7 For provision about the meaning of expressions used in this paragraph, see paragraph 129.

C2127 Transitional tax-free amount certificates

1 A “transitional tax-free amount certificate” is a certificate relating to an individual that—
a is issued by a certification administrator, on an application made in accordance with this paragraph, and
b certifies that the certification administrator is satisfied as to—
i the amount of the individual’s lump sum transitional tax-free amount, and
ii the amount of the individual’s lump sum and death benefit transitional tax-free amount.
2 An application for a certificate in relation to an individual—
a may be made by the individual or, if the individual is deceased, the individual’s personal representatives;
b may be made to any person who is a certification administrator in relation to the individual;
c must be accompanied by complete evidence as to the amount of the individual’s lump sum and death benefit transitional tax-free amount;
d may not be made after the individual becomes entitled to a relevant lump sum (within the meaning of section 637S of ITEPA 2003), and
e may not be made after the 31 October next following the end of the tax year in which a relevant lump sum death benefit (within the meaning of section 637S of ITEPA 2003) is paid in respect of the individual.
3 The certification administrator to whom an application is made must, before the end of the period of three months beginning with the date on which the the application is received, determine the application by—
a issuing the applicant with a certificate, or
b notifying the applicant that the application is refused.
4 A certificate must (in addition to certifying the matter mentioned in sub-paragraph (1)(b)) contain the following information—
a the individual’s name, address and national insurance number,
b the individual’s lifetime allowance previously-used amount expressed as a percentage of the standard lifetime allowance for the tax year 2023/24,
c the amount that the certification administrator is satisfied is the individual’s lump sum transitional tax-free amount, and
d the amount that the certification administrator is satisfied is the individual’s lump sum and death benefit transitional tax-free amount.
5 A certificate may be in such form as the certification administrator may determine and may, in particular, be incorporated into any other document that is given to the applicant by the certification administrator.
6 If at any time it appears to a person who is a certification administrator in relation to the individual that the amount specified on a certificate under sub-paragraph (4)(c) or (d) does not accurately reflect the individual’s lump sum transitional tax-free amount or (as the case may be) lump sum and death benefit transitional tax-free amount, they must cancel the certificate by giving notice of the cancellation to the applicant or, if the applicant is deceased, the applicant’s personal representatives.
7 A certificate—
a comes into force when it is issued, and
b ceases to be in force on the giving of a notice under sub-paragraph (6).
8 The Commissioners for His Majesty’s Revenue and Customs may by regulations—
a amend sub-paragraph (3) by substituting a different period for that for the time being specified there, or
b make further provision about transitional tax-free certificates.
9 For provision about the meaning of expressions used in this paragraph, see paragraph 129.
10 In the second column of the Table in section 98 of TMA 1970 (penalty for failure to give certificates etc), at the appropriate place insert—
.

127A Availability of member’s overseas transfer allowance

1 This paragraph applies where—
a one or more benefit crystallisation events within the meaning of Part 4 of FA 2004 occurred in relation to an individual before 6 April 2024, and
b a transfer of the kind mentioned in section 244IA(1)(a) of FA 2004 is made in relation to the individual on or after that date.
2 Where the individual’s adjusted lifetime allowance previously-used amount is equal to or greater than the individual’s lifetime allowance, none of the individual’s overseas transfer allowance is available on the making of the transfer.
3 Otherwise, the amount of the individual’s overseas transfer allowance that is available on the making of the transfer is—
a the amount of that allowance that is available in accordance with section 244IC of FA 2004 on the making of the transfer, less
b the individual’s adjusted lifetime allowance previously-used amount,
or, if that produces a negative result, nil.
4 In this paragraph “adjusted lifetime allowance previously-used amount” means—
A-B
where—
  • A is the lifetime allowance previously-used amount;
  • B is the aggregate of any amounts included in A that are attributable to the occurrence, before 6 April 2024, of benefit crystallisation event 1.

127B Provision of information by individuals to certification administrators

1 Sub-paragraph (2) applies where—
a a certification administrator issues a transitional tax-free amount certificate, and
b there are one or more other certification administrators in relation to the individual to whom the certificate relates.
2 The relevant person must send a copy of the certificate to each certification administrator within sub-paragraph (1)(b).
3 Sub-paragraph (2) must be complied with—
a before the end of the period of 90 days beginning with the day on which the relevant person receives the certificate, and
b before the first day following that on which the relevant person receives the certificate on which a relevant benefit crystallisation event occurs in relation to the individual.
4 In the case of an obligation under sub-paragraph (2) relating to a pension scheme of which the individual is a member as a result of a block transfer, references in sub-paragraph (3) to the day on which the relevant person receives the certificate are to the later of that day and the day on which the relevant person receives notice of the block transfer.
5 Sub-paragraph (6) applies where—
a a certification administrator cancels a transitional tax-free amount certificate, and
b there are one or more other certification administrators in relation to the individual to whom the certificate relates.
6 The relevant person must send a copy of the notice to each certification administrator within sub-paragraph (5)(b).
7 Sub-paragraph (6) must be complied with—
a before the end of the period of 90 days beginning with the day on which the relevant person receives notice of the cancellation, and
b before the first day following that on which the relevant person receives notice of the cancellation on which a relevant benefit crystallisation event occurs in relation to the individual.
8 In the case of an obligation under sub-paragraph (6) relating to a pension scheme of which the individual is a member as a result of a block transfer, references in sub-paragraph (7) to the day on which the relevant person receives notice of the cancellation are to the later of that day and the day on which the relevant person receives notice of the block transfer.
9 In this paragraph—
  • “block transfer”: a transfer is “a block transfer” in relation to a member of a pension scheme if it involves the transfer, in a single transaction, of all the sums and assets held for the purposes of, or representing accrued rights under, the arrangements under the scheme which relate to the member and at least one other member of the scheme;
  • “relevant benefit crystallisation event” has the same meaning as in section 637S of ITEPA 2003 (availability of individual’s lump sum and death benefit allowance);
  • “relevant person”, in relation to a transitional tax-free amount certificate, means—
    1. the individual to whom the certificate relates, or
    2. if the individual is deceased, the individual’s personal representatives.

C1128 Provision of information by scheme administrators to members

1 A reference in the Provision of Information Regulations to a relevant benefit crystallisation event is, in relation to times before 6 April 2024, a reference to a benefit crystallisation event within the meaning of Part 4 of FA 2004.
2 Sub-paragraph (3) applies where—
a one or more benefit crystallisation events within the meaning of Part 4 of FA 2004 occurred in relation to a member of a registered pension scheme before 6 April 2024, and
b it is necessary for a certification administrator to determine, for the purposes of any provision of the Provision of Information Regulations as that provision has effect for the tax year 2024-25 or a subsequent tax year, the amount of the member’s lump sum allowance that has been expended by the events mentioned in paragraph (a).
3 For those purposes, the amount of the member’s lump sum allowance that has been expended by the events mentioned in sub-paragraph (2)(a) is—
a if the certification conditions are met in relation to the determination, so much of the member’s lump sum transitional tax-free amount as is referable to those events;
b otherwise, an amount equal to 25% of so much of the member’s lifetime allowance previously-used amount as is referable to those events.
4 Sub-paragraph (5) applies where—
a one or more benefit crystallisation events within the meaning of Part 4 of FA 2004 occurred in relation to a member of a registered pension scheme before 6 April 2024, and
b it is necessary to determine, for the purposes of any provision of the Provision of Information Regulations as it has effect for the tax year 2024-25 or a later tax year, the amount of the member’s lump sum and death benefit allowance that has been expended by the events mentioned in paragraph (a).
5 For those purposes, the amount of the member’s lump sum and death benefit allowance that has been expended by the events mentioned in sub-paragraph (4)(a) is—
a if the certification conditions are met in relation to the determination, so much of the member’s lump sum and death benefit transitional tax-free amount as is referable to those events;
b otherwise, an amount equal to the appropriate percentage of so much of the member’s lifetime allowance previously-used amount as is referable to those events.
6 In sub-paragraph (5)(b) “the appropriate percentage” means—
a 100% in a case in which—
zi the amount of the member’s lifetime allowance previously-used amount is equal to or greater than the member’s lifetime allowance,
i the member becomes entitled to a serious ill-health lump sum under the scheme before 6 April 2024 and is under the age of 75 at the time of the payment, or
ii the member dies before 6 April 2024 under the age of 75 and the conditions in sub-paragraph (6A) are met,
b 25% in any other case.
6A The conditions mentioned in sub-paragraph (6)(a)(ii) are—
a that before 6 April 2024 a person is paid a defined benefits lump sum death benefit, or an uncrystallised funds lump sum death benefit, under the scheme in respect of the member,
b that the lump sum is paid before the end of the period of two years beginning with the day on which the scheme administrator of the scheme first knew of the individual’s death or (if earlier) the day on which the scheme administrator could first reasonably have been expected to have known of it, and
c that the person to whom the lump sum is paid is not a non-qualifying person.
6B In this paragraph “the certification conditions”, in relation to a determination mentioned in sub-paragraph (2)(b) or (4)(b), means the following conditions—
a that either—
i the certification administrator making the determination has issued a transitional tax-free amount certificate to the member, or
ii the member has provided that certification administrator with a copy of a transitional tax-free amount certificate issued to the member by another certification administrator, and
b that the certification administrator making the determination—
i has not cancelled the certificate, and
ii has not been notified that the certificate has been cancelled by another certification administrator.
7 In this paragraph “the Provision of Information Regulations” means the Registered Pension Schemes (Provision of Information) Regulations (S.I. 2006/567).
8 For further provision about the meaning of expressions used in this paragraph, see paragraph 129.

129 Paragraphs 125 to 128: interpretation

1 “Lump sum transitional tax-free amount”, in relation to an individual, means the total of—
a each pension commencement lump sum (if any) to which the individual has, before 6 April 2024, become entitled under a registered pension scheme, F16...
b each uncrystallised funds pension lump sum (if any) to which the individual has, before 6 April 2024, become entitled under a registered pension scheme, so far as no charge to income tax under Part 9 of ITEPA 2003 or Part 4 of FA 2004 arises in respect of it.
c each stand-alone lump sum (if any) to which the individual has, before 6 April 2024, become entitled under a registered pension scheme, so far as no charge to income tax under Part 9 of ITEPA 2003 or Part 4 of FA 2004 arises in respect of it, and
d where a benefit crystallisation event within sub-paragraph (2)(a) of paragraph 20 of Schedule 36 to FA 2004 (pre-commencement pensions) was treated as having occurred before 6 April 2024 in relation to the individual, an amount equal to 25% of the amount treated as crystallised by that event under sub-paragraph (2)(b) of that paragraph.
2 “Lump sum and death benefit transitional tax-free amount”, in relation to an individual, means the total of—
za the individual’s lump sum transitional tax-free amount,
a each relevant lump sum (if any) not comprised in the individual’s lump sum transitional tax-free amount to which the individual has, before 6 April 2024, become entitled under a registered pension scheme, so far as no charge to income tax under Part 9 of ITEPA 2003 or Part 4 of FA 2004 arises in respect of it, and
b each relevant lump sum death benefit (if any) paid before 6 April 2024 by a registered pension scheme in respect of the individual so far as no charge to income tax under Part 9 of ITEPA 2003 or Part 4 of FA 2004 arises in respect of it, F57...
F57c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3 For the purposes of sub-paragraph (2)—
a a lump sum is “relevant” if the individual becoming entitled to it constituted a benefit crystallisation event within the meaning of Part 4 of FA 2004;
b a lump sum death benefit is “relevant” if its payment constituted a benefit crystallisation event within the meaning of Part 4 of FA 2004.
4 “Complete evidence”, in relation to an individual’s lump sum and death benefit transitional tax-free amount, means evidence of—
a each lump sum (if any) to which the individual has become entitled, and
b each lump sum death benefit (if any) that has been paid in respect of the individual,
that is comprised, or any part of which is comprised, in the individual’s lump sum and death benefit transitional tax-free amount.
4A “Lifetime allowance previously-used amount”, in relation to an individual, means (subject to sub-paragraphs (4B) and (4C)) the amount that would have been the previously used amount for the purposes of section 219 of FA 2004 (availability of individual’s lifetime allowance) if a benefit crystallisation event (within the meaning of that section) had occurred in relation to the individual immediately before 6 April 2024.
4B Sub-paragraph (4C) applies where—
a the individual reached the age of 75 before 6 April 2024,
b on the individual reaching that age, an amount was, or amounts were, crystallised by one or more of benefit crystallisation events 5, 5A and 5B, and
c the individual did not become entitled to a lump sum under a registered pension scheme in the period beginning with the date on which the individual reached the age of 75 and ending with 5th April 2024.
4C The amount determined under sub-paragraph (4A) is to be reduced by the amount or (if more than one) the sum of the amounts mentioned in sub-paragraph (4B)(b).
5 In paragraphs 125 to 128 and this paragraph—
  • “benefit crystallisation event”, followed by a number, has the same meaning as in Part 4 of FA 2004 (see section 216 of that Act);
  • “certification administrator”, in relation to an individual, means—
    1. the scheme administrator of a registered pension scheme of which the individual is a member or, if the individual is deceased, of which the individual was a member immediately before death, or
    2. an insurance company to which a registered pension scheme has transferred sums or assets to secure the payment to the individual of a scheme pension or a lifetime annuity;
  • “complete evidence” has the meaning given by sub-paragraph (4);
  • “defined benefits lump sum death benefit” has the same meaning as in Part 4 of FA 2004;
  • “drawdown pension fund”, in relation to an individual, has the same meaning as in Part 4 of FA 2004 (see Part 1 of Schedule 28 to that Act);
  • “entitled” (in relation to a lump sum) has the same meaning as in Part 4 of FA 2004;
  • “insurance company” has the same meaning as in Part 4 of FA 2004;
  • “lifetime allowance” has the same meaning as in Part 4 of FA 2004;
  • “lifetime allowance previously-used amount” has the meaning given by sub-paragraphs (4A) to (4C);
  • “lump sum and death benefit transitional tax-free amount” has the meaning given by sub-paragraphs (2) and (3);
  • “lump sum death benefit” has the same meaning as in Part 4 of FA 2004;
  • “lump sum transitional tax-free amount” has the meaning given by sub-paragraph (1);
  • “member” has the same meaning as in Part 4 of FA 2004;
  • “non-qualifying person” has the same meaning as in section 206 of FA 2004;
  • “pension commencement lump sum” has the same meaning as in Part 4 of FA 2004;
  • “the Provision of Information Regulations” means the Registered Pension Schemes (Provision of Information) Regulations (S.I. 2006/567);
  • “scheme administrator” has the same meaning as in Part 4 of FA 2004;
  • “serious ill-health lump sum” has the same meaning as in Part 4 of FA 2004;
  • “stand-alone lump sum” has the meaning given by article 25 of the Taxation of Pension Schemes (Transitional Provisions) Order 2006 (S.I. 2006/572);
  • “standard lifetime allowance”, in relation to an individual, has the same meaning as in Part 4 of FA 2004 as that Part has effect in relation to the individual;
  • “transitional tax-free amount certificate” means a certificate under paragraph 127;
  • “uncrystallised funds pension lump sum” has the same meaning as in Part 4 of FA 2004.
  • “uncrystallised funds pension lump sum death benefit” has the same meaning as in Part 4 of FA 2004;
6 A reference in any of paragraphs 125 to 128 or this paragraph to a provision of FA 2004 is to that provision as it had effect immediately before 6 April 2024.

130 Statements for certain members who would not otherwise receive one in the tax year 2024-25

1 The scheme administrator of a registered pension scheme must provide a statement to each relevant person before the end of the tax year 2024-25.
2 In sub-paragraph (1) “relevant person” means—
a any member of the scheme—
i in relation to whom one or more benefit crystallisation events occurred before 6 April 2024, and
ii who on that date does not have an actual (as opposed to prospective) entitlement to be paid a pension, or
b the personal representatives of a member within paragraph (a) who has died.
3 The statement must contain the information in regulation 14(3) of the Provision of Information Regulations (percentage of standard lifetime allowance expended by benefit crystallisation events) in respect of benefit crystallisation events occurring before 6 April 2024.
4 In this paragraph—
  • “benefit crystallisation event” means a benefit crystallisation event within the meaning of Part 4 of FA 2004, as that Part had effect immediately before 6 April 2024;
  • “member” has the same meaning as in Part 4 of FA 2004;
  • “the Provision of Information Regulations” means the Registered Pension Schemes (Provision of Information) Regulations (S.I. 2006/567) , as those regulations had effect immediately before 6 April 2024;
  • “scheme administrator” has the same meaning as in Part 4 of FA 2004.

130A Lump sums paid on or after 6 April 2024 where entitlement arose before that date

1 The amendments made by or under this Schedule, and the amendments made by section 14, are to be disregarded for the purposes of determining—
a the extent (if any) to which a transitional lump sum is a lump sum of a description permitted to be paid by the lump sum rule in section 166(1) of FA 2004, and
b the tax treatment under Part 9 of ITEPA 2003 of a transitional lump sum.
2 In this paragraph “transitional lump sum” means a lump sum to which a member of a registered pension scheme becomes entitled before 6 April 2024 and which is paid on or after that date.
3 In sub-paragraph (2) “member” has the same meaning as in Part 4 of FA 2004.

131 Lump sum death benefits paid on or after 6 April 2024 that crystallised before that date

1 The amendments made by or under this Schedule, and the amendments made by section 14, are to be disregarded for the purposes of determining the tax treatment under Part 9 of ITEPA 2003 of a transitional lump sum death benefit.
2 In section 637S (availability of individual’s lump sum and death benefit allowance), “relevant lump sum death benefit” does not include a transitional lump sum death benefit.
3 In this paragraph “transitional lump sum death benefit” means a lump sum death benefit paid on or after 6 April 2024 so far as relating to rights that, before that date, crystallised under section 216 of FA 2004.

132 Modifications of scheme rules

1 A rule of a registered pension scheme relating to a member’s entitlement to , or to the payment of, a lifetime allowance excess lump sum has effect, in relation to entitlements arising on or after 6 April 2024, and so far as possible, as a rule relating to the member’s entitlement to , or to the payment of, a pension commencement excess lump sum.
2 The amendments F63... made by or under this Schedule , and the amendments made by section 14, do not affect the interpretation of any relevant rule of a registered pension scheme.
3 For the purposes of sub-paragraph (2), a rule of a registered pension scheme is “relevant” if the rule imposes a limit on the amount of a benefit payable under the scheme to, or in respect of, a member by reference to the member’s lifetime allowance, the standard lifetime allowance or the lifetime allowance charge.
4 In this paragraph “member”, “lifetime allowance”, “standard lifetime allowance” and “lifetime allowance charge” have the same meaning as in Part 4 of FA 2004 as that Part had effect immediately before 6 April 2024.
5 This paragraph ceases to have effect at the end of the tax year 2028-29.

132A Continuity of the law

1 This paragraph applies where any provision of or made under this Schedule re-enacts (with or without modification) a provision of the pensions tax code that is repealed by or under this Schedule.
2 The repeal and re-enactment does not affect the continuity of the law.
3 Anything done (including any subordinate legislation made) or having effect as if done, under or for the purposes of the repealed provision that could have been done under or for the purposes of the corresponding provision of the pensions tax code, if in force or effective immediately before the commencement of that corresponding provision, has effect thereafter as if done under or for the purposes of that corresponding provision.
4 Any reference (express or implied) in any enactment, instrument or document to a provision of the pensions tax code shall be construed (so far as the context permits) as including, as respects times, circumstances or purposes in relation to which the corresponding repealed provision had effect, a reference to that corresponding provision.
5 Any reference (express or implied) in any enactment, instrument or document to a repealed provision shall be construed (so far as the context permits) as respects times, circumstances or purposes in relation to which the corresponding provision of the pensions tax code has effect, as being or (according to the context) including a reference to that corresponding provision.
6 This paragraph has effect subject to any specific transitional provision or saving contained in or made under this Schedule.
7 In this paragraph a reference to an enactment being repealed includes its being substituted or revoked.
8 In this paragraph “pensions tax code” means—
a Part 4 of FA 2004 (pension schemes) and subordinate legislation made under it, and
b Part 9 of ITEPA 2003 (pension income) and subordinate legislation made under it.

133 Power to make further transitional provision

1 The Treasury may make transitional, transitory or saving provision (in addition to that contained in paragraphs 126 to 132) in connection with the coming into force of any amendment made by section 14 or this Schedule.
2 Regulations under this paragraph may—
a insert provision into this Part of this Schedule;
b amend any provision of paragraphs 126 to 132;
c make different provision for different purposes.

134 Power to make further provision in connection with the abolition of lifetime allowance charge

1 The Treasury may by regulations make further provision (in addition to that contained in Parts 1 to 5 of this Schedule) in consequence of, or otherwise in connection with, the provision made by sections 18, 19 and 23 of F(No.2)A 2023.
2 Regulations under this paragraph may—
a amend any provision of the Income Tax Acts (including any provision of, or amendment made by, this Schedule);
b have effect for the tax years 2024-25 and 2025-26 (as well as subsequent tax years);
c make different provision for different purposes;
d include transitional, transitory or saving provision (including any provision that could be made under paragraph 133).
3 Regulations under this paragraph F71... may not be made unless a draft of the statutory instrument containing them has been laid before, and approved by a resolution of, the House of Commons.
4 No regulations under this paragraph may be made after 30 June 2026.
5 In sub-paragraph (2) “amend” includes repeal or revoke.

Schedule 10 

Calculation of trade profits etc

Section 16

Part 1 Main provisions

Introduction of cash basis default

1 Chapter 3 of Part 2 of ITTOIA 2005 (trade profits: basic rules) is amended as follows.
2 After section 24 insert—
3 In section 25 (generally accepted accounting practice)—
a in subsection (1), after “trade” insert “to which the cash basis does not apply”;
b omit subsection (3).
4 Omit section 25A (cash basis for small businesses).
5 Before section 26 insert—

6 Removal of turnover restrictions etc

In Chapter 3A of Part 2 of ITTOIA 2005 (trade profits: cash basis) omit—
a section 31A (conditions to be met for profits to be calculated on cash basis) and the italic heading before it,
b section 31B (relevant maximum), and
c section 31D (effect of election under section 25A) and the italic heading before it.

7 Removal of interest payments restriction

In Part 2 of ITTOIA 2005—
a in Chapter 4 (trade profits: rules restricting deductions) omit section 51A (cash basis: interest payments on loans), and
b in Chapter 5 (trade profits: rules allowing deductions) omit section 57B (cash basis: interest payments on loans) and the italic heading before it.

8 Removal of loss restrictions

In ITA 2007—
a in Chapter 2 of Part 4 (loss relief: trade losses) omit section 74E (no relief where cash basis used to calculate losses) and the italic heading before it, and
b in Chapter 1 of Part 8 (relief for interest payments), in section 384B(1) (restriction on relief where cash basis applies)—
i for the words from “has made” to “profits of” substitute “carried on”;
ii for “carried on by the partnership” substitute “the profits of which”.

Part 2 Minor and consequential amendments

Chapter 1 Amendments of ITTOIA 2005

Other amendments of Chapter 3 of Part 2

9 Chapter 3 of Part 2 of ITTOIA 2005 (trade profits: basic rules) is amended as follows.
10 Before section 24 insert the following italic heading—
.
11 Before section 25C (inserted by paragraph 5 of this Schedule) insert —
12 Before section 27 insert the following italic heading—
.
13 Before section 30 insert the following italic heading—
.
14 Before section 31 insert the following italic heading—
.

Amendments of other provisions

15 ITTOIA 2005 is amended as follows.
16 Omit section 31C (excluded persons) (but see paragraph 11, which inserts substantially similar provision).
17 In section 32A (application of Chapter 4 of Part 2 to the cash basis), in subsection (2)—
a omit “the following—”, and
b omit the words from “section 51A” to the end.
18 In section 56A (application of Chapter 5 of Part 2 to the cash basis), omit subsection (2).
19 In section 58 (incidental costs of obtaining finance), in subsection (5) omit paragraph (a) (including the “and” at the end).
20 In section 94E (excluded vehicles), in subsection (3)(b), for “25A” substitute “24A”.
21
1 Section 96A (capital receipts under, or after leaving, cash basis) is amended as follows.
2 In subsection (3), for “an election under section 25A (cash basis for trades) has effect” substitute “the cash basis applies”.
3 In subsection (3A), in paragraph (b), for the words “for which no election under section 25A had effect” substitute “in which the cash basis did not apply”.
4 In subsection (3C)—
a in paragraph (a), for “no election under section 25A has effect” substitute “the cash basis does not apply”;
b in paragraph (b), for “such an election had had effect” substitute “the cash basis did apply”.
5 In subsection (3D)—
a in paragraph (a), for “an election under section 25A had effect” substitute “the cash basis applied”;
b in paragraph (c), for “an election under section 25A had not had effect” substitute “the cash basis had not applied”.
6 In subsection (3E), in paragraph (a), for “for which no election under section 25A had effect” substitute “in which the cash basis did not apply”.
22 Section 96B (section 96A: supplementary provision), in subsection (3)—
a in paragraph (a), for “an election under section 25A has effect” substitute “the cash basis applies”;
b in paragraph (b), for “no such election had effect” substitute “the cash basis did not apply”.
23 In section 97A (cash basis: value of trading stock on cessation of trade), in subsection (1)(b), for “an election under section 25A (cash basis for small business) has effect” substitute “the cash basis applies”.
24 In section 97B (cash basis: value of work in progress on cessation of profession or vocation), in subsection (1)(b), for “an election under section 25A (cash basis for small business) has effect” substitute “the cash basis applies”.
25 In section 227A (application of Chapter 17 of Part 2 where cash basis used), in subsection (1)—
a for paragraph (a) substitute—
b for paragraph (b) substitute—
26 In section 227B (cash basis treatment: full relief under Chapter 1 of Part 6A (trading allowance)), in subsection (2), for “an election under section 25A is to be treated as having effect” substitute “the cash basis is to be treated as not applying”.
27 In section 239A (spreading on leaving cash basis), in subsection (1)—
a in paragraph (a), for “an election under section 25A (cash basis for small businesses) has effect” substitute “the cash basis applies”;
b in paragraph (b), for “no such election has effect” substitute “the cash basis does not apply”.
28 In section 240B (meaning of “entering the cash basis”)—
a in paragraph (a), for “an election under section 25A has effect” substitute “the cash basis applies”;
b in paragraph (b), for “such an election does not have effect” substitute “the cash basis does not apply”.
29 In section 246 (basic meaning of “post-cessation receipt”), in subsection (2A), for “an election under section 25A (cash basis for small businesses) has effect” substitute “the cash basis applies”.
30 In section 254 (allowable deductions), for subsection (2A) substitute—
31 In section 783AE (full relief: introduction), in subsection (3)—
a for paragraph (a) substitute—
;
b in paragraph (b)—
i for “25A” substitute “25C(1)”;
ii at the end insert “in relation to one or more of the trades mentioned in paragraph (a)”;
c omit paragraphs (c) and (d).
32 In section 786 (meaning of “rent-a-room receipts”), in subsection (5), for paragraph (b) substitute—
33 In section 805 (meaning of “qualifying care receipts”), in subsection (4), for paragraph (b) substitute—
34 In section 820 (periods of account not ending on 5 April), in subsection (2), for “an election under section 25A (cash basis for small businesses) has effect in relation to the trade” substitute “the profits of the trade are required under section 24A to be calculated on the cash basis”.
35 In Part 2 of Schedule 4 (index of defined expressions), in the entry for “the cash basis (in Part 2)”, for “section 25A” substitute “section 24A”.

Chapter 2 Amendments of other Acts

36 TMA 1970

In section 42(7)(e) of TMA 1970 (procedure for making claims etc), for “25A” substitute “25C”.

37 TCGA 1992

In section 41(9)(a) of TCGA 1992 (restriction of losses by reference to capital allowances and renewals allowances), for the words from “calculating”, in the second place it occurs, to “effect” substitute “be construed in accordance with Part 2 of ITTOIA 2005 (see section 24A of that Act)”.

CAA 2001

38 CAA 2001 is amended as follows.
39
1 Section 1A (capital allowances and charges: cash basis) is amended as follows.
2 In subsection (9)—
a in paragraph (a), for “an election under section 25A of ITTOIA 2005 (cash basis for trades) has effect” substitute “the cash basis applies”;
b in paragraph (b), for “no such election has effect” substitute “the cash basis did not apply”.
3 In subsection (11)—
a before paragraph (a) insert—
;
b in paragraph (a), for the words from “calculating”, in the second place it occurs, to “effect” substitute “doing so in accordance with section 24A of ITTOIA 2005”.
40 In section 4(2ZA)(a) (capital expenditure)—
a for “an election under section 25A of ITTOIA 2005 has effect” substitute “the cash basis applies”;
b at the end insert “(see section 24A of ITTOIA 2005)”.
41 In section 66A(6) (persons leaving cash basis)—
a in paragraph (a), for “an election under section 25A had effect” substitute “the cash basis applied”;
b in paragraph (b), for “such an election does not have effect” substitute “the cash basis does not apply”.
42
1 Section 431D (persons leaving cash basis) is amended as follows.
2 In subsection (1)—
a in paragraph (b), for “an election under section 25A of ITTOIA 2005 (cash basis for trades) has effect” substitute “the cash basis applies”;
b in paragraph (d), for “an election under section 25A of that Act had not had effect” substitute “the cash basis had not applied”.
3 In subsection (4)—
a in paragraph (a), for “an election under section 25A of ITTOIA 2005 had effect” substitute “the cash basis applied”;
b in paragraph (b), for “such an election does not have effect” substitute “the cash basis does not apply”.
4 After subsection (4) insert—
43
1 Section 462A (persons leaving cash basis) is amended as follows.
2 In subsection (1)—
a in paragraph (b), for “an election under section 25A of ITTOIA 2005 (cash basis for trades) has effect” substitute “the cash basis applies”;
b in paragraph (d), for “an election under section 25A of that Act had not had effect” substitute “the cash basis had not applied”.
3 In subsection (5)—
a in paragraph (a), for “an election under section 25A of ITTOIA 2005 had effect” substitute “the cash basis applied”;
b in paragraph (b), for “such an election does not have effect” substitute “the cash basis does not apply”.
4 After subsection (4) insert—
44
1 Section 477A (persons leaving cash basis) is amended as follows.
2 In subsection (1)—
a in paragraph (b), for “an election under section 25A of ITTOIA 2005 (cash basis for trades) has effect” substitute “the cash basis applies”;
b in paragraph (d), for “an election under section 25A of that Act had not had effect” substitute “the cash basis had not applied”.
3 In subsection (5)—
a in paragraph (a), for “an election under section 25A of ITTOIA 2005 had effect” substitute “the cash basis applied”;
b in paragraph (b), for “such an election does not have effect” substitute “the cash basis does not apply”.
4 After subsection (5) insert—

45 ITA 2007

1 ITA 2007 is amended as follows—
2 In section 64(8) (deduction of losses from general income), omit paragraph (bb).
3 In section 72(5) (relief for individuals for losses in first 4 years of trade), omit paragraph (bb).

46 Consequential repeals

In consequence of the repeals made by this Schedule, omit the following provisions (which insert or amend provisions repealed by this Schedule)—
a in Part 1 of Schedule 4 to FA 2013, paragraphs 3, 4, 10, 14, 15 and 39(3),
b in Part 2 of that Schedule, paragraphs 44 and 54, and
c paragraph 6 of Chapter 3A of Part 1 of Schedule 1 to FA 2022.

Part 3 Commencement and transitional provision

47 Commencement

The amendments made by this Schedule have effect for the tax year 2024-25 and subsequent tax years.

Transitional provision

48
1 This paragraph has effect for the purposes of construing references in the Income Tax Acts to the cash basis in relation to the calculation of the profits of a trade (but not a property business) for a tax year before 2024-25.
2 Any reference to calculating the profits of a trade on the cash basis is to be read as a reference to doing so in accordance with section 25A of ITTOIA 2005.
3 Any reference to the cash basis applying (or not applying) in relation to a trade for the tax year is to be read as a reference to an election under section 25A of ITTOIA 2005 having effect (or not having effect) in relation to the trade for the tax year.
49
1 This paragraph has effect for the purposes of construing references in the Income Tax Acts to a change in the basis of calculation of the profits of a trade (but not a property business) for the tax year 2024-25.
2 A person carrying on a trade “enters the cash basis” in relation to the trade in the tax year 2024-25 if—
a the cash basis applies in relation to the trade for the tax year 2024-25, and
b no election under section 25A of ITTOIA 2005 had effect in relation to the trade for the tax year 2023-24,
and related expressions are to be construed accordingly.
3 A person carrying on a trade “leaves the cash basis” in relation to the trade in the tax year 2024-25 if—
a an election under section 25A of ITTOIA 2005 had effect in relation to the trade for the tax year 2023-24, and
b the cash basis does not apply in relation to the trade for the tax year 2024-25,
and related expressions are to be construed accordingly.
4 For the purposes of this paragraph, the cash basis applies to a trade in relation to a tax year if the profits of the trade for the tax year are required by virtue of section 24A(1) of ITTOIA 2005 to be calculated in accordance with that section.
50 Paragraphs 48 and 49 apply to professions and vocations as they apply to trades.

Schedule 11 

Capital-raising arrangements etc

section 20

Part 1 Depositary receipts and clearance services

1 Introduction

FA 1986 is amended as follows.

Stamp duty

2 In section 67 (stamp duty: depositary receipts)—
a in the heading, at the end insert “1.5% charge”;
b in subsection (1) omit “(other than a bearer instrument)”;
c after that subsection insert—
;
d after subsection (9) insert—
3 In section 69 (depositary receipts: supplementary), in subsection (1), in the words before paragraph (a), for “sections 67 and 68 above” substitute “sections 67, 68 and 72ZB”.
4 In section 70 (stamp duty: clearance services)—
a in the heading, at the end insert “1.5% charge”;
b in subsection (1) omit “(other than a bearer instrument)”;
c after that subsection insert—
;
d after subsection (9) insert—
5 After section 72 (clearance services: supplementary) insert—

Stamp duty reserve tax

6
1 Section 90 (section 87: other exceptions) is amended as follows.
2 In subsection (3C)—
a at the end of paragraph (a) insert “and”;
b omit paragraph (b).
3 In subsection (3E) omit paragraph (b).
4 In subsection (4)—
a the words from “falling within” to the end become paragraph (a);
b after that paragraph insert
7
1 In the italic heading before section 93 (SDRT: depositary receipts), at the end insert “: depositary receipts”.
2 In section 93—
a in the heading, at the end insert “: 1.5% charge”;
b in subsection (1)—
i in the words before paragraph (a) omit “Subject to subsection (7) below and section 95 below,”;
ii in paragraph (b) omit “or issued”;
c after that subsection insert—
;
d in subsection (4) omit paragraph (a);
e omit subsection (10).
8 In section 94 (depositary receipts: supplementary), in subsection (1), in the words before paragraph (a), for “section 93 above” substitute “sections 93 and 97AC”.
9 In section 95 (depositary receipts: exceptions)—
a in subsection (1), in the words after paragraph (b) omit “subject to section 97C,”;
b in subsection (2), in the words before paragraph (a) omit “, issue”;
c omit subsections (3) to (5);
d omit subsection (7).
10 In section 95A (depositary receipts: exception for replacement securities)—
a in subsection (1) omit “, issue”;
b in subsection (3)—
i in paragraph (a), in the words before sub-paragraph (i) omit “, issue”;
ii in paragraph (b) omit “or (3)”;
c in subsection (4), in paragraph (a) omit “, issued”.
11
1 Before section 96 (SDRT: clearance services) insert—
.
2 In section 96—
a in the heading, at the end insert “: 1.5% charge”;
b in subsection (1)—
i in the words before paragraph (a) omit “Subject to subsection (5) below and sections 97 and 97A below,”;
ii in paragraph (b) omit “or issued”;
c after that subsection insert—
;
d in subsection (2) omit paragraph (a);
e omit subsection (8).
12
1 Section 97 (clearance services: exceptions) is amended as follows.
2 In subsection (1), in the words after paragraph (b) omit “subject to section 97C,”.
3 In subsection (3), in the words before paragraph (a) omit “or issue”.
4 Omit subsections (4) to (6).
13
1 Section 97AA (clearance services: further exception) is renumbered section 97ZA.
2 In that section—
a in the heading, for “further exception” substitute “exception for replacement securities”;
b in subsection (1) omit “or issue”;
c in subsection (3)—
i in paragraph (a), in the words before sub-paragraph (i) omit “or issue”;
ii in paragraph (b) omit “or (4)”;
d in subsection (4), in paragraph (a) omit “or issued”.
14
1 Section 97A (clearance services: election for alternative system of charge) is amended as follows.
2 In subsection (3), in paragraph (a) omit “or issue”.
3 In subsection (4), in both places omit “, issue”.
15 After section 97A insert—
16 In section 97B (transfer between depositary receipt system and clearance system) omit subsection (1A).
17 Omit section 97C (transfers to non-EU depositary receipt and clearance services systems).

Part 2 Bearer instruments

18 In section 79 of FA 1986 (stamp duty: loan capital: new provisions), in subsection (2)—
a omit “on the issue of an instrument which relates to loan capital or”;
b for “such an instrument” substitute “an instrument which relates to loan capital”.
19
1 Schedule 15 to FA 1999 (stamp duty: bearer instruments) is amended as follows.
2 Omit paragraph 1 (charge on issue of instrument) and the italic heading before it.
3 In paragraph 2 (charge on transfers of stock by means of instrument), in the words before paragraph (a) omit “duty was not chargeable under paragraph 1 on the issue of the instrument and”.
4 In paragraph 4 (1.5% rate of duty) omit “or 6”.
5 Omit paragraph 7 (ascertainment of market value for charge on issue of instrument).
6 In paragraph 17 (exemption for issue of instruments relating to non-sterling stock), in sub-paragraph (1)—
a in the words before paragraph (a) omit “the issue of”;
b omit the words after paragraph (b).
7 Omit the italic heading before paragraph 21.
8 Omit paragraph 21 (procedure for stamping instruments where duty chargeable on issue).
9 Omit paragraph 22 (consequences of default in complying with procedure for stamping).

Part 3 Minor and consequential amendments

20 In section 131 of FA 1976 (Inter-American Development Bank), in subsection (3) omit “on the issue of any instrument by the Bank or”.
21
1 In section 126 of FA 1984 (tax exemptions in relation to designated international organisations), subsection (3) is amended as follows.
2 In paragraph (c) omit “on the issue of any instrument by the organisation or”.
3 Omit paragraph (d).
22 In section 99 of FA 1986 (interpretation), in subsection (10), in the words before paragraph (a), for “97AA” substitute “97ZA”.
23
1 Section 50 of FA 1987 (warrants to purchase Government stock etc) is amended as follows.
2 In subsection (2)—
a omit paragraph (a);
b in paragraph (b), for “such an instrument” substitute “an instrument which relates to an interest, right or option within subsection (1)”.
3 In subsection (3)—
a omit paragraph (b);
b in paragraph (c), for “under that Schedule” substitute “under Schedule 15 to the Finance Act 1999 (stamp duty: bearer instruments)”.
24
1 Section 143 of FA 1988 (stamp duty: paired shares) is amended as follows.
2 Omit subsections (2) and (3).
3 In subsection (5), in paragraph (a), for “such as is mentioned in subsection (3)(a) above” substitute “for sale of such units to the public made at the same time and at a broadly equivalent price in a country other than the United Kingdom or the foreign country”.

Part 4 Commencement and transitional provision

25 Commencement

The amendments made by this Schedule have effect—
a as they apply for the purposes of stamp duty, in relation to instruments executed on or after 1 January 2024;
b as they apply for the purposes of stamp duty reserve tax, in relation to—
i agreements to transfer chargeable securities made on or after that day;
ii the transfer or issue of chargeable securities on or after that day.

26 Transitional provision: depositary receipts: exception from SDRT for replacement securities

1 This paragraph applies for the purposes of section 95A of FA 1986 (depositary receipts: exception for replacement securities) where the securities mentioned in subsection (3)(a) of that section were issued before 1 January 2024.
2 The amendments made by paragraphs 7 and 10 are to be disregarded.

27 Transitional provision: clearance services: exception from SDRT for replacement securities

1 This paragraph applies for the purposes of section 97ZA of FA 1986 (clearance services: exception for replacement securities) where the securities mentioned in subsection (3)(a) of that section were issued before 1 January 2024.
2 The amendments made by paragraphs 11 and 13 are to be disregarded.

28 Transitional provision: bearer instruments

1 Sub-paragraph (2) applies in relation to bearer instruments issued before 1 January 2024—
a in the United Kingdom, or
b outside the United Kingdom by or on behalf of a UK company.
2 The amendment made by paragraph 19(3) is to be disregarded.
3 In sub-paragraph (1) “bearer instrument” and “UK company” have the same meaning as in Schedule 15 to FA 1999 (see paragraphs 3 and 11 of that Schedule).
4 Sub-paragraph (5) applies in relation to UK bearer instruments within the meaning of section 99(1A) of FA 1986 issued before 1 January 2024.
5 The amendments made by paragraph 6(2) and (3) are to be disregarded.

29 Transitional provision: warrants to purchase Government stock etc

1 This paragraph applies in relation to securities constituted by or transferable by means of an instrument issued before 1 January 2024.
2 The amendments made by paragraph 23 are to be disregarded.

Schedule 12 

Pillar Two

Section 22

Part 1 Introduction

1
1 F(No.2)A 2023 is amended in accordance with Parts 2 to 4 of this Schedule.
2 The amendments made by those Parts have effect for accounting periods beginning on or after 31 December 2023.

Part 2 Multinational top-up tax

2 Partnerships

1 In section 122 (chargeable persons)—
a in subsection (1)(a)(ii), omit “that is not a body corporate”,
b in subsection (2)(c)(ii), omit “that is not a body corporate”, and
c omit subsections (4) to (6).
2 After section 232, insert—
3 In section 259 (other definitions), in subsection (1) at the appropriate place insert—
4 After section 268 insert—
5 In section 269 (chargeable persons for domestic top-up tax)—
a in subsection (1)—
i in paragraph (a), omit “that is not a body corporate”, and
ii in paragraph (b), omit “that is not a body corporate” in the second place it occurs, and
b omit subsections (4) to (6).
6 In Schedule 14 (administration of multinational top-up tax)—
a in paragraph 3—
i in paragraph (a) of sub-paragraph (2), omit “or a limited liability partnership”,
ii in that sub-paragraph, omit paragraph (c), and
iii for sub-paragraph (3) substitute—
,
b after paragraph 37 insert—
, and
c in paragraph 39—
i omit the “or” after paragraph (a) in sub-paragraph (1),
ii after that paragraph insert—
, and
iii in sub-paragraph (2), after paragraph (a) insert—
.
7 In Schedule 17 (index of defined expressions), in the table, at the appropriate places insert—
;
;
.

3 Qualifying non-profit subsidiaries

In section 127 (excluded entities), in subsection (5)—
a for paragraph (b) substitute—
, and
b omit paragraph (c) (and the “and” after it).

4 Charging permanent establishments of intermediate/partially-owned parent members

1 Section 128 (responsible members) is amended as follows.
2 In subsection (3), for paragraph (c) substitute—
3 In subsection (4), after “for” insert
.
4 In subsection (5), for paragraph (b) substitute—
5 In subsection (6), after “for” insert
.
6 In section 232, after subsection (3) insert—

5 De-merged groups

1 Section 131 (whether de-merged groups meet the revenue threshold) is amended as follows.
2 In subsection (1), omit “if” in the second place it occurs (immediately following “A de-merged group meets condition A”).
3 For subsection (2) substitute—

6 Adjustment for changes in accounting policies and prior period errors

In section 146 (adjustment for changes in accounting policies and prior period errors), in paragraph (b), for the words from “correction”, in the second place it occurs, to the end substitute “error results in a recalculation under section 217(5) (post filing adjustments of covered taxes)”.

7 Pension expense

For section 147 (accrued pension expense) substitute—

8 Tax credits

1 After section 147 insert—
2 In section 148 (treatment of qualifying refundable tax credits)—
a in the heading, for “Treatment” substitute “Meaning”,
b omit subsection (1), and
c in subsection (4)(b), omit “tax”.
3 After that section insert—
4 In section 175 (amounts excluded from covered tax balance), in subsection (2), in paragraph (c), after “credit”, in the second place it occurs, insert “, or in respect of a marketable transferable tax credit,”.
5 In section 176 (amounts to be reflected in covered tax balance), in subsection (2)—
a in paragraph (d), in sub-paragraph (i), after “credit” insert “or a marketable transferable tax credit”, and
b in paragraph (e), after “credit” insert “or a marketable transferable tax credit”.
6 After section 176 insert—

9 Adjustments for companies in distress

1 Section 151 (adjustments for companies in distress) is amended as follows.
2 In subsection (1)—
a in the words before paragraph (a), after “group” insert “for an accounting period”,
b omit the “and” after paragraph (a),
c after that paragraph insert—
, and
d after paragraph (b) insert
3 In subsection (6)(c) for “deferred tax assets” substitute “local tax attributes”.
4 After subsection (6) insert—
5 For subsection (7) substitute—
6 After that subsection insert—

10 Adjustments where life assurance business carried on

1 Section 152 is amended as follows.
2 In subsection (2), for “formed part of the member’s tax expense amount” substitute “been included in the member’s covered tax balance”.
3 For subsection (4) substitute—

11 Exclusion of certain insurance reserve movement expense

In section 153 (exclusion of certain insurance reserve movement expense), in subsection (1) after “excluded dividends” insert “falling within section 141(2)(b)”.

12 Permanent establishment income and expense attribution

1 Section 159 (permanent establishment income and expense attribution) is amended as follows.
2 In subsection (1), for the words from “only” to the end substitute “—
3 In subsection (2), for the words from “only” to the end substitute
4 In subsection (3), for the words from “only” to the end substitute
5 After that subsection insert—

13 Election to spread certain capital gains

1 Section 163 (election to spread capital gains over five years) is amended as follows.
2 In subsection (1), for “collectively” substitute “and those preceding periods are referred to collectively as”.
3 In subsection (2)—
a for Step 1 substitute—
, and
b for Steps 9 to 11 substitute—
4 In subsection (3), omit “standard”.

14 Transparent entities etc

1 Section 168 (underlying profits of transparent and reverse hybrid entities) is amended in accordance with sub-paragraphs (2) to (8).
2 In subsection (2), in paragraph (b), after territory insert “as a result of being tax resident in that territory”.
3 In subsection (3), after “entity” insert “or individual”.
4 In subsection (6), in paragraph (a), after “is” insert “an entity that is”
5 For subsection (9) substitute—
6 In subsection (10), after “entity” insert “or an individual”.
7 In subsection (11), in the words before paragraph (a), for “is located” substitute “was created, R is not tax resident in any territory”.
8 After that subsection insert—
9 In section 170 (adjustments for ultimate parent that is a flow-through entity)—
a in subsection (2), for “an ownership interest (direct or indirect)” substitute “a direct ownership interest”, and
b after that subsection insert—
10 In section 238 (tax transparency of entities)—
a for “if” substitute “to the extent that”, and
b for “and”, in both places it occurs, substitute “or”.

15 Covered taxes

In section 173 (covered taxes), in subsection (1)(c) for “of the member” substitute “in which the tax is imposed”.

16 Tax equity partnerships

1 After section 176C (as inserted by paragraph 8), insert—
2 In Schedule 15 (elections), in paragraph 2(1), before paragraph (a) insert—
.

17 Reallocation of tax expense

1 In section 177 (permanent establishments), in subsection (1), after “establishment”, in the second place it occurs, insert “(and is to be regarded as qualifying current tax expense of the permanent establishment for the purposes of applying section 175(2)(a))”.
2 Section 178 (reallocation of tax expense) is amended as follows.
3 In subsection (1), in the words after paragraph (b) after “qualifying” insert “current”.
4 After subsection (1) insert—
5 In subsection (2), in the words before Step 1, after “O” insert “(under subsections (1) and (1A))”.
6 After subsection (4) insert—
7 In section 179 (controlled foreign company tax regimes)—
a after subsection (1) insert—
b after subsection (3) insert—

18 Controlled foreign company tax regimes

1 Section 179 (controlled foreign company tax regimes) is amended as follows.
2 In subsection (1), in paragraph (b), for “controlled foreign company” substitute “CFC entity”.
3 In subsection (4), after the definition of “controlled foreign company tax regime” insert—
.
4 In section 180 (blended CFC regimes)—
a in subsection (2)(b), omit “blended”,
b in subsection (4), omit “blended” in the third place it occurs,
c in subsection (5)—
i in the words before paragraph (a), omit “blended” in the second place it occurs, and
ii in paragraph (b), omit “blended”,
d in subsection (6)(a), omit “blended”,
e in subsection (8)—
i in the words before paragraph (a), omit “blended”, and
ii in paragraph (b), in the words before sub-paragraph (i), omit “blended”, and
f omit subsection (10).
5 In Schedule 17 (index of defined expressions), in the table, at the appropriate place insert—
.

19 Blended CFC regimes

1 Section 180 (blended CFC regimes) is amended as follows.
2 In subsection (5)(a), after “C” insert “in relation to the CFC entity”.
3 In subsection (7)—
a after “C” insert “in relation to a CFC entity in which C has an ownership interest”, and
b for “F” substitute “the entity”.
4 In subsection (8)(b) for sub-paragraph (ii) substitute—
.

20 Qualifying foreign tax credits (substitute loss carry forward assets)

1 Section 183 (substitute loss carry forward assets) is amended as follows.
2 In subsection (3), in paragraph (b), for “in respect of which the foreign tax was calculated” substitute “in the territory in which the member is located”.
3 In subsection (4), after “qualifying” insert “foreign”.
4 In subsection (5), after “section” insert “and in section 183A“
5 After section 183 insert—

21 Substance based income exclusion: inter-jurisdictional employees and assets

1 In section 196 (eligible payroll costs)—
a in subsection (1), in paragraph (c) for “those activities are substantially performed” substitute “at least some of the work is carried out”, and
b after that subsection insert—
2 In section 197 (eligible tangible asset amounts) after subsection (6) insert—

22 Substance based income exclusion: inclusion of payroll costs and assets voluntary

1 In section 196, in subsection (1)—
a omit the “and” after paragraph (c), and
b at the end of paragraph (d) insert
2 In section 197, in subsection (5)—
a in the words before paragraph (a), omit “it is”,
b in paragraph (a), at the beginning insert “it is”,
c omit the “and” after that paragraph,
d in paragraph (b), at the beginning insert “it is”, and
e at the end of that paragraph insert

23 Substance based income exclusion: impairment losses

In section 197(4)—
a omit the “and” after paragraph (b), and
b after paragraph (c) insert—
.

24 Substance based income exclusion: dual use assets

In section 197, after subsection (7) insert—

25 Substance based income exclusion: leases

1 In section 195 (calculation of substance based income exclusion), after subsection (7) insert—
2 After section 197 insert—

26 Substance based income exclusion: power to make further provision

After section 198 insert—

27 Transfer of assets or liabilities to a member of a multinational group

In section 211 (transfer of assets or liabilities to a member of a multinational group)—
a for subsection (1) substitute—
, and
b in subsection (2)(a), for “subsection (1)(b) applies” substitute “subsection (1C) applies in relation”.

28 Investment entity tax transparency election

In section 213 (investment entity tax transparency election), after subsection (6) insert—

29 Meaning of country-by-country report

1 After section 251 insert—
2 In Schedule 16 (transitional provision), in paragraph 3, for sub-paragraphs (7) and (8) substitute—
3 In section 276(b)(i) (application of transitional provision for domestic top-up tax purposes), for “and (8)” substitute “to (9)”.

30 Joint ventures

In section 227 (application of Part to joint venture groups), in subsection (2) for “the multinational group” substitute “each multinational group”.

31 Insurance investment entities

1 Section 236 (investment funds and investment entities) is amended as follows.
2 In subsection (2)—
a omit paragraph (b),
b for paragraph (c) substitute—
, and
c for paragraph (e) substitute—
3 After that subsection insert—

32 Location of entities

1 In section 239(6)—
a in paragraph (c), omit “(3) or”, and
b in the words after paragraph (d), for “and 126” substitute “, 128 and 129”.
2 In section 240 (location of flow-through entities), for subsection (1) substitute—

33 Currency

1 For section 254 (use of currency) substitute—
2 In section 123 (amount charged by reference to “top-up amounts”), for Step 4 substitute—

34 Application of Pillar Two rules to members of a group

1 In section 255 (meaning of Pillar Two rules)—
a after subsection (2) insert—
,
b in subsection (3)—
i for the words before paragraph (a) substitute “Condition A is met if—”,
ii in paragraph (a), after “multinational group” insert “for the accounting period”, and
iii in paragraph (b), after “multinational group” insert “for the accounting period”, and
c after that subsection insert—
2 In paragraph 2 of Schedule 16 (intra-group transfers before entry into regime)—
a in sub-paragraph (1), for paragraph (b) substitute—
,
b in sub-paragraph (4)(b)—
i in the words before sub-paragraph (i), after “which” insert “the Pillar Two rules apply to the transferee.”, and
ii omit sub-paragraphs (i) and (ii),
c in sub-paragraph (6), in paragraph (a) of Step 2, for paragraph (a) substitute—
, and
d in sub-paragraph (11)—
i the words from ““a transfer” to the end become paragraph (a), and
ii after that paragraph insert—
3 In paragraph 3 of that Schedule—
a in sub-paragraph (2)(c)(ii), for “applied to members” substitute “would, ignoring any transitional safe harbour election, have applied to any member”, and
b omit sub-paragraph (4).

35 Qualifying domestic top-up tax not treated as accruing

1 After section 256 insert—
2 In section 194 (total top-up amount for a territory), in subsection (3), for “section 256” substitute “sections 256 and 256A”.

36 Consistency with Pillar Two rules

In section 262 (power to amend to ensure consistency with Pillar Two) after subsection (1) insert—

37 Overpaid tax

1 Schedule 14 is amended as follows.
2 In paragraph 51 (claims in relation to overpaid tax)—
a in sub-paragraph (5)—
i omit the words from “otherwise” to “paragraph,”, and
ii after “due” insert “otherwise than—
, and
b omit sub-paragraphs (6) and (7).
3 After paragraph 33 insert—

38 Intragroup transfers before entry into regime

1 Paragraph 2 of Schedule 16 (intra-group transfers before entry into regime) is amended as follows.
2 In sub-paragraph (3)(b), after “limited to” insert “the lesser of the cap amount and the sum of—
.
3 After that sub-paragraph insert—
4 In sub-paragraph (5)(b), for “is” substitute “, and the value of deferred tax assets that arose in relation to the assets before their transfer, are”.
5 For sub-paragraph (7) substitute—
6 In sub-paragraph (9)—
a for “, ignoring sub-paragraph (7),” substitute “the sum of”,
b for “in relation to the transfer of assets would exceed” substitute “and the value of deferred tax assets that arose in relation to the assets before their transfer is greater than”, and
c omit “in relation to it”.
7 In sub-paragraph (11), for “substantially the same economic effect as” substitute “a similar effect for accounting purposes to”.
8 After sub-paragraph (11) insert—

39 Transitional safe harbour

1 Part 2 of Schedule 16 (transitional safe harbour) is amended as follows.
2 In paragraph 3, for sub-paragraph (1) substitute—
3 In paragraph 4—
a in sub-paragraph (3)—
i omit the “and” after paragraph (b), and
ii after paragraph (c) insert
, and
b in sub-paragraph (5), in the words before paragraph (a), for “(c)” substitute “(d)”.
4 In paragraph 6(6), for “if” substitute “unless”.

40 Transitional reporting election

1 In Schedule 16 (transitional provision), at the end insert—
2 In Schedule 15 (elections), in paragraph 2(1), after paragraph (j) insert—
.

41 Qualifying domestic top-up tax safe harbour

1 After Schedule 16 insert—
2 In section 227 (application of Part to joint venture groups), in subsection (1), in the words before paragraph (a), for “Schedule 16” substitute “Schedules 16 and 16A”.
3 For section 260 (transitional provision) substitute—
4 In Schedule 15 (elections), in paragraph 2(1), after paragraph (k) (as inserted by paragraph 40(2) of this Schedule) insert—

Part 3 Domestic top-up tax

42 Securitisation entities

1 In section 267 (DTT excluded entities)—
a after subsection (3) insert—
b in subsection (4)—
i the words from ““qualifying” to the end become the first definition, and
ii after that definition insert—
2 After section 267 insert—
3 After section 272 insert—

43 Investment entities

1 In section 267—
a in subsection (2), after “subsection (1)” insert “or (3B)(b)”, and
b after subsection (3A) (as inserted by paragraph 42) insert—
2 In consequence of the amendments made by sub-paragraph (1), in section 266(1) (qualifying entities) omit “or an investment entity”.
3 In section 272 (determining top-up amounts of entity that is a member of a group)—
a in subsection (8), in paragraph (e)—
i after “effect” insert “in relation to a qualifying entity that is a standard member of a group” and
ii after “of” insert “qualifying”, and
b after that subsection insert—

44 Treatment of qualifying refundable tax credits

1 In section 272(8), after paragraph (d) insert—
.
2 In section 273(3) (determining top-up amounts of entity that is not a member of a group), after paragraph (b) insert—
.

45 Effect of becoming subject to Pillar Two rules

1 After section 273 insert—
2 In section 276 (application of transitional provision)—
a after paragraph (a) insert—
, and
b in paragraph (c), after sub-paragraph (iii) insert—
.

46 Dividends from protected cell companies

After section 273B (as inserted by paragraph 45) insert—

47 Consistency with Pillar Two rules

1 In section 262(1) (power to amend to ensure consistency with Pillar Two)—
a in paragraph (a), for “or of Schedule 14 to Schedule 16” substitute “, Part 4 or any of Schedules 14 to 16A and 18”, and
b in paragraph (b), for “or Schedule 14 to Schedule 17” substitute “, Part 4 or any of Schedules 14 to 18”.
2 In consequence of the amendments made by sub-paragraph (1), omit section 274 (application of section 262).

Part 4 Minor and technical changes

48 Chapter 2 of Part 3 (qualifying multinational groups and their members)

1 In section 127(12) (excluded entities) for “pensions service” substitute “pension services”.
2 In section 128 (responsible members)—
a in subsection (2)—
i for “its members” substitute “the members of the group”, and
ii for “it” substitute “the ultimate parent”, and
b in subsection (7)—
i in the words before paragraph (a), after “tax” insert “for an accounting period”,
ii in paragraph (a), at the beginning insert “the period commences on or after 31 December 2023 and”, and
iii in paragraph (b), in sub-paragraph (i), after “force” insert “for the period”.
3 In section 130 (change in composition of multinational group), in subsection (5)—
a after “in” insert “all, or substantially all, of the members of”, and
b after “becoming” insert “members of”.

49 Chapter 3 of Part 3 (effective tax rate)

1 In section 132(2) (effective tax rate), in the words after paragraph (c) for “164” substitute “174”.

50 Chapter 4 of Part 3 (calculation of adjusted profits)

1 In section 138(1) (profits adjusted to be before tax), omit “its”.
2 In section 140 (profits adjusted to be profits before certain purchase accounting adjustments)—
a in subsection (2), for “shares” substitute “ownership interests”, and
b in subsection (3)—
i for “shares” substitute “ownership interests”, and
ii for the words from “it” to the end substitute “the members of the group do not have sufficient records to identify the adjustment made with reasonable accuracy.”
3 In section 142 (excluded equity gain or loss), in subsection (2)(b) omit “other than an interest to which subsection (3) applies,”.
4 In section 149 (arm’s length requirement for certain transactions), in subsection (6) for “the member” substitute “both that member and the other member”.
5 In section 150 (tax treatment of transactions between members of a multinational group)—
a in subsection (6)—
i in paragraph (a), for “in the territory in which the member is located” substitute “that applies to the member”, and
ii in paragraph (b), for “that territory” substitute “the territory in which the member is located”, and
b after that subsection insert—
6 In section 165 (election to have excluded equity gains and losses included), in subsection (2)—
a after the words before paragraph (a) insert—
,
b the existing paragraphs (a) and (b) become sub-paragraphs (i) and (ii) of the paragraph (a) inserted above, and
c at the end of sub-paragraph (ii) insert

51 Chapter 5 of Part 3 (covered tax balance)

1 In section 185(2)(a) (inclusion of existing deferred tax assets and liabilities on entry into regime), after “asset” insert “or liability”.
2 In section 186 (deferred tax assets recorded at less than minimum rate)—
a for subsection (2) substitute—
, and
b omit subsection (8).
3 In section 187 (election for losses to be treated as special loss deferred tax assets), in subsection (6)—
a for paragraph (b) substitute—
, and
b in the words after paragraph (b), for “where subsection (5) applies” substitute “in which the election has effect”.

52 Chapter 6 of Part 3 (calculation of top-up amounts)

1 In section 194 (total top-up amount for a territory), in subsection (3), for “in”, in the third place it occurs, substitute “for”.
2 In section 196 (eligible payroll costs), in subsection (3), for ““Employee”” substitute “In this section “employee””.
3 In section 197 (eligible tangible asset amount)—
a for subsection (1) substitute—
, and
b omit subsection (2).

53 Chapter 7 of Part 3 (allocating top-up amounts)

1 Section 201 (inclusion ratio) is amended as follows.
2 In subsection (1), in Step 2, after “held by” insert “individuals and”.
3 In subsection (2)—
a after “held by” insert “individuals and”, and
b after “such” insert “individuals and”.

54 Chapter 8 of Part 3 (further adjustments)

1 In section 205 (election to carry forward and reduce collective additional amount)—
a in subsection (1), after “amount” insert “under section 203”,
b in subsection (2)(a)—
i after “amount”, in the second place it occurs, insert “under section 203”, and
ii for “those members” substitute “the members of the group in the relevant territory”,
c in subsection (2)(b), after “amount”, in the first place it occurs, insert “under section 203”, and
d in subsection (3), after “amount”, in the second place it occurs, insert “under section 203”.
2 In section 217(8) (post filing adjustments of covered taxes), in paragraph (a), at the beginning insert “the reduction of the covered tax balance of the member for the prior period resulting from”.

55 Chapter 9 of Part 3 (special provision for investment entities etc)

1 In section 220(3) (top-up amount of investment entity) for “section 33(2)” substitute “that Chapter”.
2 In section 221(4) (substance based income exclusion for investment entity), for “Schedule 12” substitute “Schedule 14”.
3 In section 229(3) (multi-parent groups), for “section 127(3)” substitute “section 128(3)”.

56 Chapter 10 of Part 3 (definitions etc)

1 In section 231(1) (meaning of entity)—
a after paragraph (a), insert “or”,
b omit paragraphs (b) and (c), and
c in paragraph (d)—
i omit “other”, and
ii after “the arrangement” insert “(such as a partnership or trust)”.
2 In section 232(1)(a) (permanent establishments treated as entities), for “of the main entity” substitute “in which the main entity is located”.
3 In section 235(1)(b) (pension funds and pension services entities), at the beginning insert “it is”.
4 In section 244 (calculating percentage ownership interests of a class), in subsection (2)(a), after “by” insert “an individual or by”.
5 In section 245 (calculating percentage ownership interests: excluded entities), in subsection (2), after “Where” insert “an individual or”.
6 In section 246(1)(b)(ii) (calculating percentage direct and indirect ownership interests) for “E” substitute “F”.
7 In section 248 (exclusion of indirect interests held through ultimate parent), after “entity” insert “or individual”.
8 In section 249(2) (consolidated financial statements)—
a for “an” substitute “the”, and
b after “standard” insert “that is used as the basis for the statements that would have been prepared”.
9 In section 252(3) (application to sovereign wealth funds), for “government” substitute “governmental”.
10 In section 253 (refundable imputation taxes)—
a in subsection (1)(a)(i)—
b for “in respect of a dividend made by the member and is” substitute “as a result of a dividend made by the member,”, and
c in subsection (2)(b)—
i in sub-paragraph (v), for the words from “, a resident pension fund” to the end substitute “or a resident pension fund”,
ii omit the “or” after that sub-paragraph, and
iii after that sub-paragraph insert—
.
11 In section 259 (other definitions), in subsection (1)—
a at the appropriate place insert—
, and
b in the definition of “tax treaty”, for “agreement for” substitute “international agreement for, or provision of an international agreement concerned with,”.

57 Part 4 (domestic top-up tax)

1 In section 271 (election to make one member of a group liable for amounts charged)—
a in subsection (1) for “responsible” substitute “elected”,
b in subsection (2) for “responsible”, in both places it occurs, substitute “elected”, and
c in subsection (3) for “responsible” substitute “elected”.
2 In section 272 (determining top-up amounts of entity that is a member of a group), in subsection (8)(c)(i) for “after subsection (1) there were inserted” substitute “for subsection (1A) there were substituted”.
3 In section 273 (determining top-up amounts of entity that is not a member of a group), in subsection (4)—
a in the words before paragraph (a), after “domestic” insert “entity”,
b in paragraph (e), for “subsection (2)(c)” substitute “subsection (3)(c)”,
c after paragraph (p), insert—
.

58 Schedules 14 to 17

1 In Schedule 14 (administration)—
a in paragraph 6 (registration), after sub-paragraph (1) insert—
b in paragraph 34 (group payment notices)—
i in sub-paragraph (2), for “the time the liability to tax arose” substitute “any time in the accounting period to which the amount payable relates”,
ii after that sub-paragraph insert—
,
c in paragraph 35(1), for “ring-fenced entity”, in the second place it occurs, substitute “member of a ring-fenced body sub-group that the entity is a member of”,
d in paragraph 36(3), for the words from “person” to the end substitute “recipient is not a person to whom the notice can be given (see paragraphs 34(2) and (2A) and 35(1)).”, and
e in paragraph 37—
i in sub-paragraph (4)(b), after “for” insert “income tax or”, and
ii in sub-paragraph (6), for “payer” substitute “payee”.
2 In Schedule 15 (elections)—
a in paragraph 1(1), after paragraph (a) insert—
, and
b in paragraph 2(1)—
i after paragraph (e) insert—
, and
ii after paragraph (f) insert—
.
3 In Schedule 16 (multinational top-up tax: transitional provision), in paragraph 10—
a the existing words become sub-paragraph (1),
b in the words before paragraph (a) of that sub-paragraph—
i for “section 226” substitute “section 227”, and
ii after “groups)” insert “, that Chapter has effect as if”,
c in paragraph (a) of that sub-paragraph, for “3(2)(c)” substitute “3(2)(b)”, and
d after that sub-paragraph insert—
4 In Schedule 17 (index of defined expressions), in the table—
a in the definition of “government entity”, for “government” substitute “governmental”,
b in the definition of “pensions services entity” for “pensions” substitute “pension”, and
c at the appropriate places insert—
;
;
;
;
;
;
;
.

Schedule 13 

Promotion of tax avoidance schemes

Section 33

1 Disqualification for promoting tax avoidance

In CDDA 1986, after section 8ZE insert—

Minor and consequential amendments

2
1 CDDA 1986 is amended as follows.
2 In section 1 (disqualification orders: general)—
a in subsection (1), after “6” insert “, 8ZF”;
b in subsection (2), for “and 8ZA” substitute “, 8ZA and 8ZF”.
3 In section 1A (disqualification undertakings: general)—
a in subsection (1)—
i for “and 8ZE” substitute “, 8ZE, 8ZF and 8ZG”, and
ii for “Secretary of State” substitute “appropriate authority”;
b in subsection (2), for “or 8ZC” substitute “, 8ZC or 8ZF”;
c in subsection (4), for “Secretary of State” substitute “appropriate authority”;
d after subsection (4) insert—
4 In section 8A (variation etc. of disqualification undertaking)—
a after subsection (2) insert—
;
b in subsection (3), in paragraph (b), for “or 8” substitute “, 8, 8ZF or 8ZG”.
5 In section 12A (Northern Irish disqualification orders), in the words before paragraph (a), after “2002” insert “or made by the High Court of Northern Ireland under section 8ZF or 8ZG”.
6 In section 12B (Northern Irish disqualification undertakings), in the words before paragraph (a), after “undertaking” insert “under section 8ZF or 8ZG so far as they extend to Northern Ireland or”.
7 In section 12C (determining unfitness etc: matters to be taken into account)—
a in subsection (1)—
i in paragraph (b), after “8” insert “, 8ZG”, and
ii in paragraph (c), after “6” insert “or 8ZF”;
b after subsection (3) insert—
;
c in subsection (4), after “Secretary of State” insert “or the officer (as the case may be)”.
8 In section 16(4) (application for disqualification order: parties), after paragraph (b) insert—
.
9 In section 17 (application for leave under an order or undertaking)—
a after subsection (3ZB) insert—
;
b after subsection (5) insert—
10 In section 18(2A) (disqualification undertakings to be included in register), after paragraph (a) insert—
.
11 In section 20 (admissibility in evidence of statements)—
a in subsection (1), after “1986” insert “or under the 1989 Order”;
b in subsection (3)—
i omit the “or” at the end of paragraph (c);
ii at the end of paragraph (d), insert
;
c after subsection (4) insert—
12 In section 21 (interaction with Insolvency Act 1986)—
a in the heading, after “1986” insert “etc”;
b after subsection (4) insert—
13 In section 22 (interpretation), after subsection (2A) insert—
14 In section 22H (application of Act to protected cell companies)—
a in subsection (1)(a), at the beginning, insert “so far as this section extends to England and Wales and Scotland,”,
b after subsection (1)(a) insert—
c in subsection (4)(j), at the beginning insert “so far as this section extends to England and Wales and Scotland,”;
d after subsection (4)(j), insert—
15 In section 24 (extent), after subsection (2) insert—
3 In the Company Directors Disqualification (Northern Ireland) Order 2002 (S.I. 2002/3150 (N.I. 4)), in the heading of Article 17, for “in Great Britain” substitute “under the Company Directors Disqualification Act 1986”.

4 Extent

1 The amendments made by paragraph 1 extend to England and Wales, Scotland and Northern Ireland.
2 The amendments made by paragraph 2 extend to—
a England and Wales and Scotland, and
b Northern Ireland, so far as relating to applications and orders made, and undertakings accepted, under sections 8ZF or 8ZG of CDDA 1986 (inserted by paragraph 1).
3 The other provisions of CDDA 1986, except for sections 13 to 15 (consequences of contravention), extend to Northern Ireland (as well as England and Wales and Scotland) so far as relating to applications and orders made, and undertakings accepted, under section 8ZF or 8ZG.

5 Practice and procedure

1 The procedural rules for applications under section 8 of CDDA 1986 apply to HMRC disqualification applications as they apply to applications by the Secretary of State, subject to any necessary modifications.
2 The procedural rules for applications under Article 11 of the Company Directors Disqualification (Northern Ireland) Order 2002 (S.I. 2002/3150 (N.I. 4)) apply to HMRC disqualification applications as they apply to applications by the Department for the Economy in Northern Ireland, subject to any necessary modifications.
3 Sub-paragraphs (1) and (2) apply only if, and to the extent that, there are not otherwise procedural rules for HMRC disqualification applications.
4 In this paragraph—
a the “procedural rules” for applications of a particular kind are the rules, regulations or practice directions for the time being governing the practice and procedure (including fees) in respect of applications of that kind, and
b an “HMRC disqualification application” is an application by an officer of Revenue and Customs under section 8ZF or 8ZG of CDDA 1986.

6 Interpretation

In this Schedule, “CDDA 1986” means the Company Directors Disqualification Act 1986.

Footnotes

  1. F1
    Sch. 9 para. 127A and cross-heading inserted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Pensions (Abolition of Lifetime Allowance Charge etc) Regulations 2024 (S.I. 2024/356), reg. 4(12)
  2. F2
    Sch. 9 para. 130A and cross-heading inserted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Pensions (Abolition of Lifetime Allowance Charge etc) Regulations 2024 (S.I. 2024/356), reg. 4(21)
  3. F3
    Sch. 9 para. 132A and cross-heading inserted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Pensions (Abolition of Lifetime Allowance Charge etc) Regulations 2024 (S.I. 2024/356), reg. 4(24)
  4. F4
    Sch. 9 para. 125(2) omitted (with effect in accordance with reg. 1(3) of the amending S.I.) by virtue of The Pensions (Abolition of Lifetime Allowance Charge etc) Regulations 2024 (S.I. 2024/356), reg. 4(4)
  5. F5
    Sch. 9 para. 125(1)(c) and word inserted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Pensions (Abolition of Lifetime Allowance Charge etc) Regulations 2024 (S.I. 2024/356), reg. 4(3)(b)
  6. F6
    Sch. 9 para. 125(3A) inserted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Pensions (Abolition of Lifetime Allowance Charge etc) Regulations 2024 (S.I. 2024/356), reg. 4(6)
  7. F7
    Word in Sch. 9 para. 125(1)(a) omitted (with effect in accordance with reg. 1(3) of the amending S.I.) by virtue of The Pensions (Abolition of Lifetime Allowance Charge etc) Regulations 2024 (S.I. 2024/356), reg. 4(3)(a)
  8. F8
    Word in Sch. 9 para. 125(3) substituted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Pensions (Abolition of Lifetime Allowance Charge etc) Regulations 2024 (S.I. 2024/356), reg. 4(5)
  9. F9
    Words in Sch. 9 para. 125(4) substituted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Pensions (Abolition of Lifetime Allowance Charge etc) Regulations 2024 (S.I. 2024/356), reg. 4(7)
  10. F10
    Sch. 9 para. 126(3A) inserted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Pensions (Abolition of Lifetime Allowance Charge etc) Regulations 2024 (S.I. 2024/356), reg. 4(10)
  11. F11
    Word in Sch. 9 para. 126(1)(a) omitted (with effect in accordance with reg. 1(3) of the amending S.I.) by virtue of The Pensions (Abolition of Lifetime Allowance Charge etc) Regulations 2024 (S.I. 2024/356), reg. 4(9)(a)
  12. F12
    Word in Sch. 9 para. 126(1)(b) inserted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Pensions (Abolition of Lifetime Allowance Charge etc) Regulations 2024 (S.I. 2024/356), reg. 4(9)(b)
  13. F13
    Sch. 9 para. 126(1)(c) inserted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Pensions (Abolition of Lifetime Allowance Charge etc) Regulations 2024 (S.I. 2024/356), reg. 4(9)(c)
  14. F14
    Words in Sch. 9 para. 126(4) substituted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Pensions (Abolition of Lifetime Allowance Charge etc) Regulations 2024 (S.I. 2024/356), reg. 4(11)
  15. F15
    Sch. 9 para. 128(6)(a)(zi) inserted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Pensions (Abolition of Lifetime Allowance Charge etc) Regulations 2024 (S.I. 2024/356), reg. 4(13)
  16. F16
    Word in Sch. 9 para. 129(1)(a) omitted (with effect in accordance with reg. 1(3) of the amending S.I.) by virtue of The Pensions (Abolition of Lifetime Allowance Charge etc) Regulations 2024 (S.I. 2024/356), reg. 4(15)(a)
  17. F17
    Sch. 9 para. 129(1)(c)(d) inserted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Pensions (Abolition of Lifetime Allowance Charge etc) Regulations 2024 (S.I. 2024/356), reg. 4(15)(b)
  18. F18
    Words in Sch. 9 para. 129(5) inserted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Pensions (Abolition of Lifetime Allowance Charge etc) Regulations 2024 (S.I. 2024/356), reg. 4(17)(a)
  19. F19
    Word in Sch. 9 para. 129(5) inserted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Pensions (Abolition of Lifetime Allowance Charge etc) Regulations 2024 (S.I. 2024/356), reg. 4(17)(b)
  20. F20
    Sch. 9 para. 130(3) substituted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Pensions (Abolition of Lifetime Allowance Charge etc) Regulations 2024 (S.I. 2024/356), reg. 4(19)
  21. F21
    Words in Sch. 9 para. 130(4) inserted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Pensions (Abolition of Lifetime Allowance Charge etc) Regulations 2024 (S.I. 2024/356), reg. 4(20)
  22. F22
    Sch. 9 para. 132 substituted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Pensions (Abolition of Lifetime Allowance Charge etc) Regulations 2024 (S.I. 2024/356), reg. 4(22)
  23. F23
    Sch. 9 para. 132 renumbered as Sch. 9 para. 132(1) (with effect in accordance with reg. 1(3) of the amending S.I.) by The Pensions (Abolition of Lifetime Allowance Charge etc) Regulations 2024 (S.I. 2024/356), reg. 4(23)(a)
  24. F24
    Sch. 9 para. 132(2)-(5) inserted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Pensions (Abolition of Lifetime Allowance Charge etc) Regulations 2024 (S.I. 2024/356), reg. 4(23)(c)
  25. F25
    Words in Sch. 9 para. 132(1) inserted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Pensions (Abolition of Lifetime Allowance Charge etc) Regulations 2024 (S.I. 2024/356), reg. 4(23)(b)
  26. I1
    S. 11 in force at 3.9.2024 by S.I. 2024/897, reg. 2
  27. I2
    Sch. 1 para. 6: amendments have effect in relation to accounting periods beginning on or after 1.4.2024 by 2024 c. 3, Sch. 1 para. 16; S.I. 2024/286, reg. 2
  28. P1
    Sch 1 para. 16: 1.4.2024 appointed for the purposes of Sch. 1 para. 16 by S.I. 2024/286, reg. 2
  29. I3
    Sch. 1 para. 10: amendments have effect in relation to accounting periods beginning on or after 1.4.2024 by2024 c. 3, Sch. 1 para. 16; S.I. 2024/286, reg. 2
  30. I4
    Sch. 1 para. 15: amendments have effect in relation to accounting periods beginning on or after 1.4.2024 by 2024 c. 3, Sch. 1 para. 16; S.I. 2024/286, reg. 2
  31. I5
    Sch. 1 para. 13: amendments have effect in relation to accounting periods beginning on or after 1.4.2024 by 2024 c. 3, Sch. 1 para. 16; S.I. 2024/286, reg. 2
  32. I6
    Sch. 1 para. 11: amendments have effect in relation to accounting periods beginning on or after 1.4.2024 by 2024 c. 3, Sch. 1 para. 16; S.I. 2024/286, reg. 2
  33. I7
    Sch. 1 para. 5: amendments have effect in relation to accounting periods beginning on or after 1.4.2024 by 2024 c. 3, Sch. 1 para. 16; S.I. 2024/286, reg. 2
  34. I8
    Sch. 1 para. 14: amendments have effect in relation to accounting periods beginning on or after 1.4.2024 by 2024 c. 3, Sch. 1 para. 16; S.I. 2024/286, reg. 2
  35. I9
    Sch. 1 para. 2: amendments have effect in relation to accounting periods beginning on or after 1.4.2024 by 2024 c. 3, Sch. 1 para. 16; S.I. 2024/286, reg. 2
  36. I10
    Sch. 1 para. 8: amendments have effect in relation to accounting periods beginning on or after 1.4.2024 by 2024 c. 3, Sch. 1 para. 16; S.I. 2024/286, reg. 2
  37. I11
    Sch. 1 para. 9(1)-(15): amendments have effect in relation to accounting periods beginning on or after 1.4.2024 by 2024 c. 3, Sch. 1 para. 16; S.I. 2024/286, reg. 2
  38. I12
    Sch. 1 para. 12: amendments have effect in relation to accounting periods beginning on or after 1.4.2024 by 2024 c. 3, Sch. 1 para. 16; S.I. 2024/286, reg. 2
  39. I13
    Sch. 1 para. 3: amendments have effect in relation to accounting periods beginning on or after 1.4.2024 by 2024 c. 3, Sch. 1 para. 16; S.I. 2024/286, reg. 2
  40. I14
    Sch. 1 para. 4: amendments have effect in relation to accounting periods beginning on or after 1.4.2024 by 2024 c. 3, Sch. 1 para. 16; S.I. 2024/286, reg. 2
  41. I15
    Sch. 1 para. 7: amendments have effect in relation to accounting periods beginning on or after 1.4.2024 by 2024 c. 3, Sch. 1 para. 16; S.I. 2024/286, reg. 2
  42. C1
    Sch. 9 para. 128 modified (18.11.2024 for the tax year 2024-25 and subsequent tax years) by S.I. 2010/1187, reg. 21 (as inserted by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 27(23))
  43. C2
    Sch. 9 para. 127 applied (with modifications) (18.11.2024 for the tax year 2024-25 and subsequent tax years) by S.I. 2010/1187, reg. 20 (as inserted by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 27(23))
  44. F26
    Sch. 9 para. 128(6A) inserted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 17(6)(d)
  45. F27
    Sch. 9 para. 128(6B) inserted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 17(6)(e)
  46. F28
    Words in Sch. 9 para. 128(2) inserted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 17(6)(a)
  47. F29
    Words in Sch. 9 para. 128(3)(a) substituted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 17(6)(b)
  48. F30
    Words in Sch. 9 para. 128(5)(a) substituted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 17(6)(b)
  49. F31
    Words in Sch. 9 para. 128(6)(a)(ii) substituted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 17(6)(c)
  50. F32
    Sch. 9 para. 127B and cross-heading inserted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 17(5)
  51. F33
    Sch. 9 para. 126(4A) inserted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 17(2)(b)
  52. F34
    Sch. 9 para. 126(6A) inserted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 17(2)(d)
  53. F35
    Words in Sch. 9 para. 126(4)(a)(ii) substituted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 17(2)(a)
  54. F36
    Word in Sch. 9 para. 126(5) substituted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 17(2)(c)(i)
  55. F37
    Words in Sch. 9 para. 126(5) substituted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 17(2)(c)(ii)
  56. F38
    Words in Sch. 9 para. 127(1)(a) substituted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 17(3)(a)(i)
  57. F39
    Words in Sch. 9 para. 127(1)(b) substituted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 17(3)(a)(ii)
  58. F40
    Sch. 9 para. 127(2)(d)(e) substituted for Sch. 9 para. 127(2)(d) (18.11.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 17(3)(b)(ii)
  59. F41
    Sch. 9 para. 127(2)(b) substituted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 17(3)(b)(i)
  60. F42
    Words in Sch. 9 para. 127(3) substituted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 17(3)(c)(i)
  61. F43
    Words in Sch. 9 para. 127(3) substituted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 17(3)(c)(ii)
  62. F44
    Words in Sch. 9 para. 127(4)(b) inserted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 17(3)(d)(i)
  63. F45
    Words in Sch. 9 para. 127(4)(c) substituted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 17(3)(d)(ii)
  64. F46
    Words in Sch. 9 para. 127(4)(d) substituted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 17(3)(d)(ii)
  65. F47
    Words in Sch. 9 para. 127(5) substituted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 17(3)(e)(i)
  66. F48
    Words in Sch. 9 para. 127(5) substituted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 17(3)(e)(ii)
  67. F49
    Words in Sch. 9 para. 127(6) substituted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 17(3)(f)
  68. F50
    Sch. 9 para. 127A(4) inserted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 17(4)(c)
  69. F51
    Word in Sch. 9 para. 127A(2) inserted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 17(4)(a)
  70. F52
    Word in Sch. 9 para. 127A(3)(b) inserted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 17(4)(b)
  71. F53
    Sch. 9 para. 129(4A)-(4C) inserted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 17(7)(b)
  72. F54
    Words in Sch. 9 para. 129(2)(a) inserted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 17(7)(a)(ii)
  73. F55
    Word in Sch. 9 para. 129(2)(a) inserted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 17(7)(a)(iii)
  74. F56
    Sch. 9 para. 129(2)(za) inserted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 17(7)(a)(i)
  75. F57
    Sch. 9 para. 129(2)(c) omitted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by virtue of The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 17(7)(a)(iv)
  76. F58
    Words in Sch. 9 para. 129(5) substituted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 17(7)(c)(i)
  77. F59
    Words in Sch. 9 para. 129(5) inserted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 17(7)(c)(ii)
  78. F60
    Words in Sch. 9 para. 130(4) inserted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 17(8)
  79. F61
    Sch. 9 para. 130A substituted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 17(9)
  80. F62
    Sch. 9 para. 131 substituted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 17(10)
  81. F63
    Words in Sch. 9 para. 132(2) omitted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by virtue of The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 17(11)(a)(i)
  82. F64
    Words in Sch. 9 para. 132(2) inserted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 17(11)(a)(ii)
  83. F65
    Word in Sch. 9 para. 132(4) inserted (18.11.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 17(11)(b)
  84. F66
    Sch. 1 para. 21(4) substituted (retrospectively) by Finance Act 2025 (c. 8), s. 30(1)(2)
  85. F67
    Sch. 2 para. 24A and cross-heading inserted (with effect in accordance with s. 32(4) of the amending Act) by Finance Act 2026 (c. 11), s. 32(2)(4)
  86. F68
    Word in Sch. 2 para. 18(5)(b) substituted (with effect in accordance with s. 32(4) of the amending Act) by Finance Act 2026 (c. 11), s. 32(3)(4)
  87. F69
    Sch. 9 para. 134(2)(b) substituted (18.3.2026) by Finance Act 2026 (c. 11), s. 59(2)(a)
  88. F70
    Words in Sch. 9 para. 134(2)(d) inserted (18.3.2026) by Finance Act 2026 (c. 11), s. 59(2)(b)
  89. F71
    Words in Sch. 9 para. 134(3) omitted (18.3.2026) by virtue of Finance Act 2026 (c. 11), s. 59(3)
  90. F72
    Words in Sch. 9 para. 134(4) substituted (18.3.2026) by Finance Act 2026 (c. 11), s. 59(4)
  91. F73
    Words in s. 32(1) Table omitted (1.4.2026) by virtue of Finance Act 2026 (c. 11), s. 88(3), Sch. 13 para. 20 (with Sch. 13 para. 21)